The Temporal Evolution of Proactiveness in Family Firms: The Horizontal S-Curve Hypothesis
Family Business Review, October 2013
17 Pages Posted: 15 Mar 2014 Last revised: 17 May 2014
Date Written: March 14, 2014
We extend prior work on proactiveness in family firms by examining the relationship between firm age and proactiveness. Specifically, we propose an S-shaped effect of aging of family firms on proactiveness. Additionally, we provide a contingency perspective by considering the moderating role of the dispersion of managerial control among family members. Using a sample of 199 Swiss family firms with dual respondents per firm, we find that proactiveness first declines, then increases, and finally decreases again as the family firm ages, and that this relationship is steeper when the managerial control is dispersed among multiple family members.
Keywords: family firm, firm age, proactiveness, control dispersion
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