Ownership control eats strategy and culture for lunch : the case for future ownership development prior to ownership transition
Ernesto Poza-Valle
A review of the academic research and practitioner best practices literature highlights how little we still know about the role that ownership control plays in the continuity of founder-controlled and family-controlled firms. Founder-controlled firms have been shown to financially outperform other firms. Allowing for more nuanced findings given the heterogeneity of family businesses, a similar advantage has been found in family-controlled firms around the world when their performance is contrasted with that of management-controlled firms. Research points to generational and family participation effects that may contribute to a gradual decline in this advantage over the generations. Still, controlling families of family firms face the prospect of leading a family-controlled firm across generations that continues to derive the financial and noneconomic benefits of such control or to squander that opportunity by not having ownership control be a fundamental consideration in their owners' strategy when facing a generational transition. Statutory ownership control, psychological ownership and family unity approaches are all considered in an exploration of a future ownership development perspective and approaches that controlling families can take to preserve ownership control and the resulting comparative advantage evidenced in higher financial and noneconomic returns over generations.
Year of publication: |
2021
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Authors: | Poza-Valle, Ernesto |
Published in: |
European journal of family business. - Málaga : Universidad de Málaga, ISSN 2444-877X, ZDB-ID 2924317-8. - Vol. 11.2021, 1, p. 12-20
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Subject: | Ownership | Cultura | Transition | Future | Eigentümerstruktur | Ownership structure | Systemtransformation | Economic transition | Privatisierung | Privatization | Corporate Governance | Corporate governance |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Other identifiers: | 10.24310/ejfbejfb.v11i1.12026 [DOI] |
Classification: | G32 - Financing Policy; Capital and Ownership Structure |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012665015
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