Bound by Laws, or by Values? A Multi‐Level and Cross‐National Approach to Understanding the Protection of Minority Owners in Family Firms

13 Pages Posted: 29 Apr 2015

See all articles by Charles Stevens

Charles Stevens

Lehigh University - Department of Management

Roland E. Kidwell

Niagara University

Robert Sprague

University of Wyoming - College of Business

Date Written: May 2015

Abstract

Manuscript Type. Conceptual.

Research Question/Issue. How do firm‐level attributes and country‐level institutions affect cross‐national and firm‐level differences in how minority owner rights in family firms are protected?

Research Insights. We consider differences in family dynamics, stewardship‐oriented organizational culture, and countries' legal and cultural dimensions to develop theory predicting differences in minority owner protection in family firms. We advance propositions and a model delineating the role of these key firm‐level and country‐level constructs.

Theoretical/Academic Implications. We contribute to the literature in three ways: (1) We illustrate the importance of family dynamics for predicting the likelihood of a stewardship‐oriented culture to emerge in a family firm; (2) our multi‐level and cross‐national approach extends earlier explanations of agency and stewardship that are centered at the firm, family, and individual levels of analysis; and (3) we consider the impact of cross‐cultural dimensions on family firms, an area that has received limited attention in the literature.

Practitioner/Policy Implications. Our research implies that individuals considering becoming a minority owner in a family firm should take into account not only the legal institutions of that country (which might not be as strong as they first seem) but also intra‐firm family dynamics and the prevalent norms and values of the firm's national culture to get a more complete picture of the protections available to them.

Keywords: Corporate Governance, Family Dynamics, National Culture, Agency Theory, Stewardship Theory

Suggested Citation

Stevens, Charles and Kidwell, Roland E. and Sprague, Robert, Bound by Laws, or by Values? A Multi‐Level and Cross‐National Approach to Understanding the Protection of Minority Owners in Family Firms (May 2015). Corporate Governance: An International Review, Vol. 23, Issue 3, pp. 203-215, 2015, Available at SSRN: https://ssrn.com/abstract=2600289 or http://dx.doi.org/10.1111/corg.12089

Charles Stevens (Contact Author)

Lehigh University - Department of Management ( email )

621 Taylor Street
Bethlehem, PA 18015
United States

Roland E. Kidwell

Niagara University ( email )

Niagara University, NY 14109
United States

Robert Sprague

University of Wyoming - College of Business ( email )

1000 E. University Avenue
Dept. 3275
Laramie, WY 82071
United States

HOME PAGE: http://www.uwyo.edu/mgtmkt/faculty-staff/faculty-pages/sprague.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
607
PlumX Metrics