Explaining Performance Differences between Family Firms with Family and Nonfamily CEOs: It's the Nature of the Tie to the Family that Counts!

7 Pages Posted: 7 Nov 2013

See all articles by Peter Jaskiewicz

Peter Jaskiewicz

Independent

Andrew A. Luchak

University of Alberta - Department of Strategic Management and Organization

Date Written: November 2013

Abstract

Drawing on regulatory focus theory, we advance a microtheory for Naldi, Cennamo, Corbetta, and Gómez‐Mejía's findings suggesting that family ties as well as the career aspirations that derive from them trigger relatively higher prevention and relatively lower promotion goal orientations of family when compared with nonfamily chief executive officers (CEOs). Our conceptualization offers an alternative theory for why family firms with family CEOs outperform those with nonfamily CEOs in contexts such as industrial districts where conservation strategies are more valuable, but underperform in contexts such as publicly listed firms where market‐driven strategies are more valuable. Our commentary highlights the need for future research to examine variance in the self‐regulatory mindsets of family and nonfamily CEOs, and to link these differences to firm strategies and performance.

Suggested Citation

Jaskiewicz, Peter and Luchak, Andrew A., Explaining Performance Differences between Family Firms with Family and Nonfamily CEOs: It's the Nature of the Tie to the Family that Counts! (November 2013). Family Business Special Issue, Vol. 37, Issue 6, pp. 1361-1367, 2013. Available at SSRN: https://ssrn.com/abstract=2351018 or http://dx.doi.org/10.1111/etap.12070

Peter Jaskiewicz

Independent

No Address Available

Andrew A. Luchak

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

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