Family Firms in the Ownership Network: Clustering, Bridging, and Embeddedness

Entrepreneurship Theory & Practice, Forthcoming

HEC Paris Research Paper No. SPE-2018-1275

35 Pages Posted: 5 May 2018 Last revised: 30 May 2018

See all articles by Dalhia Mani

Dalhia Mani

Indian Institute of Management Bangalore

Rodolphe Durand

HEC Paris - Strategy & Business Policy

Date Written: April 18, 2018

Abstract

In this paper, we investigate family firms’ position in the intercorporate ownership network. Rooting our predictions in the Behavioral Agency Model and a Network analytical framework, we predict and find that family involvement decreases the likelihood of business group affiliation and of cross-group ties leading to a lower embeddedness within the overall network. We predict and find the opposite effect for community involvement. We use the complete longitudinal dataset of publicly listed firms’ corporate ownership ties in India (2001, 2005, and 2009). Theoretical and substantive contributions are to research on family businesses and to research on interorganizational networks.

Keywords: Family Firms, Community, Embeddedness, Network

JEL Classification: M10

Suggested Citation

Mani, Dalhia and Durand, Rodolphe, Family Firms in the Ownership Network: Clustering, Bridging, and Embeddedness (April 18, 2018). Entrepreneurship Theory & Practice, Forthcoming ; HEC Paris Research Paper No. SPE-2018-1275. Available at SSRN: https://ssrn.com/abstract=3164896

Dalhia Mani (Contact Author)

Indian Institute of Management Bangalore ( email )

Bannerghatta Main Road, Bilekahalli
Bengaluru, Karnatak 560076
India

Rodolphe Durand

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

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