Home-Region Focus and Performance of Family Firms: The Role of Family vs. Non-Family Leaders

Journal of International Business Studies, No. 1-13, 2011

Northeastern U. D’Amore-McKim School of Business Research Paper No. 2013-13

Posted: 1 Sep 2011 Last revised: 14 Jun 2013

See all articles by Elitsa R. Banalieva

Elitsa R. Banalieva

Northeastern University; Northeastern University - International Business & Strategy

Kimberly A. Eddleston

Northeastern University - Entrepreneurship and Innovation

Date Written: September 1, 2011

Abstract

Do family firms benefit more from a regional or a global geographic scope? We suggest it depends on their family leadership type – family vs non-family leadership. We offer a nuanced view of agency and stewardship theories to hypothesize that family leaders are most beneficial when pursuing a regional strategy (i.e., high home-region focus (HRF)), whereas non-family leaders are more advantageous when pursing a global strategy (i.e., low HRF). Utilizing a sample of 202 Western European firms from 1996 to 2006, we find support for this central hypothesis. Thus family leadership influences the degree to which family firms benefit from HRF.

Suggested Citation

Banalieva, Elitsa R. and Eddleston, Kimberly, Home-Region Focus and Performance of Family Firms: The Role of Family vs. Non-Family Leaders (September 1, 2011). Journal of International Business Studies, No. 1-13, 2011; Northeastern U. D’Amore-McKim School of Business Research Paper No. 2013-13. Available at SSRN: https://ssrn.com/abstract=1920659

Elitsa R. Banalieva (Contact Author)

Northeastern University ( email )

360 Huntington Ave
315 C Hayden Hall
Boston, MA 02115
United States

Northeastern University - International Business & Strategy ( email )

Boston, MA 02115
United States

Kimberly Eddleston

Northeastern University - Entrepreneurship and Innovation ( email )

Boston, MA 02115
United States

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