Implications of Intra-Family and External Ownership Transfer of Family Firms: Short-Term and Long-Term Performance Differences

Strategic Entrepreneurship Journal, Forthcoming

52 Pages Posted: 9 Dec 2011

See all articles by Karl Wennberg

Karl Wennberg

Linkoping University - Institute for Analytical Sociology (IAS)

Johan Wiklund

Syracuse University

Karin Hellerstedt

Jonkoping University - Jonkoping International Business School (JIBS)

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS); Babson College - Arthur M. Blank Center for Entrepreneurship

Date Written: December 9, 2011

Abstract

We contrast the performance consequences of intra-family versus external ownership transfers. Investigating a sample of all private family firms in Sweden that went through ownership transfers during 10 years, we find family firms transferred to external owners outperform those transferred within the family, but that survival is higher among intra-family transfers. We attribute these performance differences to the long-term orientation of family firms passed on to the next generation and to the entrepreneurial willingness of acquirers to bear uncertainty. Based on distinct ownership transition routes and theoretical mechanisms explaining performance differences, we outline implications for family business and entrepreneurship research.

Keywords: Family Business, Succession, Performance

JEL Classification: M13

Suggested Citation

Wennberg, Karl and Wiklund, Johan and Hellerstedt, Karin and Nordqvist, Mattias, Implications of Intra-Family and External Ownership Transfer of Family Firms: Short-Term and Long-Term Performance Differences (December 9, 2011). Strategic Entrepreneurship Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1970160

Karl Wennberg (Contact Author)

Linkoping University - Institute for Analytical Sociology (IAS) ( email )

Norrköping, 601 74
Sweden

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

Karin Hellerstedt

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Babson College - Arthur M. Blank Center for Entrepreneurship

231 Forest Street
Babson Park, MA 02457-0310
United States

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