Non-family managers in family firms: review, integrative framework and future research agenda

Abstract

In recent years, non-family managers (NFMs) in family firms have received increased scholarly attention, and numerous papers related to this topic have been published. Since the last academic review of NFMs in family firms (Klein and Bell in Electron J Family Bus Stud 1(1):19–37, 2007) was published a decade ago, an increasing number of relevant papers have been published. However, an integrative understanding of NFMs in family firms is still missing. An updated review in this area is useful for assessing the current state of the literature and for proposing fruitful directions for further research. For these reasons, this paper systematically reviews 118 papers relevant to the study of NFMs in family firms. The findings from the sample are organized, synthesized and analyzed with the help of an integrative framework we developed based on Gersick et al.’s (Generation to generation: life cycles of the family business. Harvard Business Press, Boston, 1997) three-circle model separated into nine different clusters. In addition, we identify a broad array of important future research avenues.

This is a preview of subscription content, log in to check access.

Fig. 1
Fig. 2

Notes

  1. 1.

    The fact that Klein and Bell (2007) included only eight papers that are also part of our review sample is because when Klein and Bell (2007) reviewed the literature (1) scholarly literature on non-family managers in family firms was much more limited than today and (2) Klein and Bell (2007) also included a significant amount of practitioner literature in their analyses. As is typical in systematic literature reviews (e.g., McKelvey and Lassen 2013), we opted to exclude the practitioner literature because the findings reported in such literature cannot be expected to be as rigorously assessed prior to publication as findings reported in peer-reviewed, academic journals.

  2. 2.

    Of course, an alternative explanation for not having identified any findings in this cluster is that potentially relevant papers were excluded from our sample because they did not pass our quality threshold. However, even if such papers did exist, given they did not pass the quality threshold, their findings may not have been as rigidly developed as those included in our sample, thus warranting their exclusion.

References

  1. *References with asterisks are part of the review sample

  2. *Amore MD, Minichilli A, Corbetta G (2011) How do managerial successions shape corporate financial policies in family firms? J Corp Financ 17(4):1016–1027. https://doi.org/10.1016/j.jcorpfin.2011.05.002

    Article  Google Scholar 

  3. *Anderson RC, Reeb DM (2003) Founding-family ownership and firm performance: evidence from the S&P 500. J Financ 58(3):1301–1328. https://doi.org/10.1111/1540-6261.00567

    Article  Google Scholar 

  4. *André P, Ben-Amar W, Saadi S (2014) Family firms and high technology mergers & acquisitions. J Manag Gov 18(1):129–158. https://doi.org/10.1007/s10997-012-9221-x

    Article  Google Scholar 

  5. *Au K, Chiang FF, Birtch TA, Ding Z (2013) Incubating the next generation to venture: the case of a family business in Hong Kong. Asia Pac J Manag 30(3):749–767. https://doi.org/10.1007/s10490-012-9331-7

    Article  Google Scholar 

  6. *Barnett T, Long RG, Marler LE (2012) Vision and exchange in intra-family succession: effects on procedural justice climate among nonfamily managers. Entrep Theory Pract 36(6):1207–1225. https://doi.org/10.1111/j.1540-6520.2012.00546.x

    Article  Google Scholar 

  7. Barney J (1991) Firm resources and sustained competitive advantage. J Manag 17(1):99–120. https://doi.org/10.1177/014920639101700108

    Article  Google Scholar 

  8. Basco R, Calabrò A, Campopiano G (2018) Transgenerational entrepreneurship around the world: Implications for family business research and practice. J Family Bus Strat. https://doi.org/10.1016/j.jfbs.2018.03.004

  9. Ben-Amar W, André P (2006) Separation of ownership from control and acquiring firm performance: the case of family ownership in Canada. J Bus Financ Acc 33(3):517–543. https://doi.org/10.1111/j.1468-5957.2006.00613.x

    Article  Google Scholar 

  10. *Bennedsen M, Nielsen K, Pérez-González F, Wolfenzon D (2007) Inside the family firm: the role of families in succession decisions and performance. Q J Econ 122(2):647–691. https://doi.org/10.1162/qjec.122.2.647

    Article  Google Scholar 

  11. *Berenbeim RE (1990) How business families manage the transition from owner to professional management. Family Bus Rev 3(1):69–110. https://doi.org/10.1111/j.1741-6248.1990.00069.x

    Article  Google Scholar 

  12. *Berghoff H (2013) Blending personal and managerial capitalism: bertelsmann’s rise from medium-sized publisher to global media corporation and service provider 1950–2010. Bus Hist 55(6):855–874. https://doi.org/10.1080/00076791.2012.744584

    Article  Google Scholar 

  13. Berrone P, Cruz C, Gomez-Mejia LR (2012) Socioemotional wealth in family firms: theoretical dimensions, assessment approaches, and agenda for future research. Family Bus Rev 25(3):258–279. https://doi.org/10.1177/0894486511435355

    Article  Google Scholar 

  14. *Binacci M, Peruffo E, Oriani R, Minichilli A (2015) Are all non-family managers (NFMs) equal? The impact of NFM characteristics and diversity on family firm performance. Corp Gov Int Rev 24(6):569–583. https://doi.org/10.1111/corg.12130

    Article  Google Scholar 

  15. *Block JH (2011) How to pay nonfamily managers in large family firms: a principal-agent model. Family Bus Rev 24(1):9–27. https://doi.org/10.1177/0894486510394359

    Article  Google Scholar 

  16. *Blumentritt TP, Keyt AD, Astrachan JH (2007) Creating an environment for successful nonfamily CEOs: an exploratory study of good principals. Family Bus Rev 20(4):321–335. https://doi.org/10.1111/j.1741-6248.2007.00102.x

    Article  Google Scholar 

  17. Booth A, Papaioannou D, Sutton A (2016) Systematic approaches to a successful literature review, 2nd edn. Sage, London

    Google Scholar 

  18. Bouncken RB, Gast J, Kraus S, Bogers M (2015) Coopetition: a systematic review, synthesis, and future research directions. RMS 9(3):577–601. https://doi.org/10.1007/s11846-015-0168-6

    Article  Google Scholar 

  19. *Burkart M, Panunzi F, Shleifer A (2003) Family firmsThe. J Financ 58(5):2167–2201. https://doi.org/10.1111/1540-6261.00601

    Article  Google Scholar 

  20. *Cabrera-Suárez MK, Martín-Santana JD (2013) Top management teams and performance in non-listed family firms. J Manag Organ 19(04):405–423. https://doi.org/10.1017/jmo.2013.15

    Article  Google Scholar 

  21. Campion MA, Medsker GJ, Higgs AC (1993) Relations between work group characteristics and effectiveness: implications for designing effective work groups. Pers Psychol 46(4):823–847. https://doi.org/10.1111/j.1744-6570.1993.tb01571.x

    Article  Google Scholar 

  22. *Canterino F, Cirella S, Guerci M, Shani AB, Brunelli MS (2013) Leading transformation in a family-owned business: Insights from an Italian company. Int J Entrep Innov Manag 17(1/2/3):54–83. https://doi.org/10.1504/ijeim.2013.055248

  23. *Carey P, Simnett R, Tanewski G (2000) Voluntary demand for internal and external auditing by family businesses. Audit J Prac Theory 19(Supplement):37–51. https://doi.org/10.2308/aud.2000.19.s-1.37

  24. *Carrasco-Hernandez A, Sánchez-Marín G (2007) The determinants of employee compensation in family firms: empirical evidence. Family Bus Rev 20(3):215–228. https://doi.org/10.1111/j.1741-6248.2007.00096.x

    Article  Google Scholar 

  25. *Caselli S, Giuli AD (2010) Does the CFO matter in family firms? Evidence from Italy. Eur J Financ 16(5):381–411. https://doi.org/10.2139/ssrn.1015738

    Article  Google Scholar 

  26. *Cater J, Schwab A (2008) Turnaround strategies in established small family firms. Family Bus Rev 21(1):31–50. https://doi.org/10.1111/j.1741-6248.2007.00113.x

    Article  Google Scholar 

  27. *Cerrato D, Piva M (2012) The internationalization of small and medium-sized enterprises: the effect of family management, human capital and foreign ownership. J Manag Gov 16(4):617–644. https://doi.org/10.1007/s10997-010-9166-x

    Article  Google Scholar 

  28. Chakrabarty S (2009) The influence of national culture and institutional voids on family ownership of large firms: a country level empirical study. J Int Manag 15(1):32–45. https://doi.org/10.1016/j.intman.2008.06.002

    Article  Google Scholar 

  29. *Chang S, Shim J (2015) When does transitioning from family to professional management improve firm performance? Strat Manag J 36(9):1297–1316. https://doi.org/10.1002/smj.2289

    Article  Google Scholar 

  30. *Chen Y, Chen C (2015) Family firms and the incentive contracting role of accounting earnings. Asia-Pac J Account Econ 22(4):384–405. https://doi.org/10.1080/16081625.2014.995769

    Article  Google Scholar 

  31. *Chen X, Cheng Q, Dai Z (2013) Family ownership and CEO turnovers. Contemp Accont Res 30(3):1166–1190. https://doi.org/10.1111/j.1911-3846.2012.01185.x

    Article  Google Scholar 

  32. *Cheng J, Cummins JD, Lin T (2015) Organizational form, ownership structure, and top executive turnover: evidence from the property-casualty insurance industry. J Risk Insur. https://doi.org/10.2139/ssrn.2326797

  33. *Chittoor R, Das R (2007) Professionalization of management and succession performance? A vital linkage. Family Bus Rev 20(1):65–79. https://doi.org/10.1111/j.1741-6248.2007.00084.x

    Article  Google Scholar 

  34. *Chrisman JJ, Chua JH, Steier LP, Wright M, Mckee DN (2012) An agency theoretic analysis of value creation through management buy-outs of family firms. J Family Bus Strat 3(4):197–206. https://doi.org/10.1016/j.jfbs.2012.10.003

    Article  Google Scholar 

  35. *Chrisman JJ, Memili E, Misra K (2014) Nonfamily managers, family firms, and the winner’s curse: the influence of noneconomic goals and bounded rationality. Entrep Theory Pract 38(5):1103–1127. https://doi.org/10.1111/etap.12014

    Article  Google Scholar 

  36. *Chua JH, Chrisman JJ, Sharma P (2003) Succession and nonsuccession concerns of family firms and agency relationship with nonfamily managers. Family Bus Rev 16(2):89–107. https://doi.org/10.1111/j.1741-6248.2003.00089.x

    Article  Google Scholar 

  37. Chua JH, Chrisman JJ, Steier LP (2003) Extending the theoretical horizons of family business research. Entrep Theory Pract 27(4):331–338. https://doi.org/10.1111/1540-8520.00012

    Article  Google Scholar 

  38. *Chua JH, Chrisman JJ, Bergiel EB (2009) An agency theoretic analysis of the professionalized family firm. Entrep Theory Pract 33(2):355–372. https://doi.org/10.1111/j.1540-6520.2009.00294.x

    Article  Google Scholar 

  39. *Classen N, Gils AV, Bammens Y, Carree M (2012) Accessing resources from innovation partners: the search breadth of family SMEs. J Small Bus Manag 50(2):191–215. https://doi.org/10.1111/j.1540-627X.2012.00350.x

    Article  Google Scholar 

  40. *Claver E, Rienda L, Quer D (2009) Family firms’ international commitment: the influence of family-related factors. Family Bus Rev 22(2):125–135. https://doi.org/10.1177/0894486508330054

    Article  Google Scholar 

  41. Coff R, Kryscinski D (2011) Drilling for micro-foundations of human capital-based competitive advantages. J Manag 37(5):1429–1443. https://doi.org/10.1177/0149206310397772

    Article  Google Scholar 

  42. *Combs JG, Penney CR, Crook TR, Short JC (2010) The impact of family representation on CEO compensation. Entrep Theory Pract 34(6):1125–1144. https://doi.org/10.1111/j.1540-6520.2010.00417.x

    Article  Google Scholar 

  43. *Cruz C, Nordqvist M (2012) Entrepreneurial orientation in family firms: a generational perspective. Small Bus Econ 38(1):33–49. https://doi.org/10.1007/s11187-010-9265-8

    Article  Google Scholar 

  44. *Cucculelli M, Mannarino L, Pupo V, Ricotta F (2014) Owner-management, firm age, and productivity in Italian family firms. J Small Bus Manag 52(2):325–343. https://doi.org/10.1111/jsbm.12103

    Article  Google Scholar 

  45. *Cui V, Ding S, Liu M, Wu Z (2016) Revisiting the effect of family involvement on corporate social responsibility: a behavioral agency perspective. J Bus Ethics. https://doi.org/10.1007/s10551-016-3309-1

  46. *D’Angelo A, Majocchi A, Buck T (2016) External managers, family ownership and the scope of SME internationalization. J World Bus 51(4):534–547. https://doi.org/10.1016/j.jwb.2016.01.004

    Article  Google Scholar 

  47. *Davis P, Stern D (1988) Adaptation, survival, and growth of the family business: an integrated systems perspective. Family Bus Rev 1(1):69–84. https://doi.org/10.1177/001872678103400303

    Article  Google Scholar 

  48. Davis JH, Schoorman FD, Donaldson L (1997) Toward a stewardship theory of management. Acad Manag Rev 22(1):20–47. https://doi.org/10.5465/amr.1997.9707180258

    Article  Google Scholar 

  49. *Dawson A (2011) Private equity investment decisions in family firms: the role of human resources and agency costs. J Bus Ventur 26(2):189–199. https://doi.org/10.1016/j.jbusvent.2009.05.004

    Article  Google Scholar 

  50. De Massis A, Frattini F, Lichtenthaler U (2013) Research on technological innovation in family firms: present debates and future directions. Family Bus Rev 26(1):10–31. https://doi.org/10.1177/0894486512466258

    Article  Google Scholar 

  51. Dekker JC, Lybaert N, Steijvers T, Depaire B, Mercken R (2013) Family firm types based on the professionalization construct: exploratory research. Family Bus Rev 26(1):81–99. https://doi.org/10.1177/0894486512445614

    Article  Google Scholar 

  52. *Dekker J, Lybaert N, Steijvers T, Depaire B (2015) The effect of family business professionalization as a multidimensional construct on firm performance. J Small Bus Manag 53(2):516–538. https://doi.org/10.1111/jsbm.12082

    Article  Google Scholar 

  53. *Del Giudice M, Peruta MR, Maggioni V (2013) One man company or managed succession: the transfer of the family dream in southern-Italian firms. J Organ Change Manag 26(4):703–719. https://doi.org/10.1108/JOCM-May-2012-0060

    Article  Google Scholar 

  54. Denyer D, Tranfield D (2006) Using qualitative research synthesis to build an actionable knowledge base. Manag Decis 44(2):213–227. https://doi.org/10.1108/00251740610650201

    Article  Google Scholar 

  55. Denyer D, Tranfield D (2009) Producing a systematic review. In: Buchanan DA, Bryman A (eds) The SAGE handbook of organizational research methods. Sage, Los Angeles, pp 671–689

    Google Scholar 

  56. Devece C, Ribeiro-Soriano DE, Palacios-Marqués D (2017) Coopetition as the new trend in inter-firm alliances: literature review and research patterns. Rev Manag Sci. https://doi.org/10.1007/s11846-017-0245-0

  57. *Di Giuli A, Caselli S, Gatti S (2011) Are small family firms financially sophisticated? J Bank Financ 35(11):2931–2944. https://doi.org/10.1016/j.jbankfin.2011.03.021

    Article  Google Scholar 

  58. *Diéguez-Soto J, Duréndez A, García-Pérez-De-Lema D, Ruiz-Palomo D (2016) Technological, management, and persistent innovation in small and medium family firms: the influence of professionalism. Can J Adm Sciences 33(4):332–346. https://doi.org/10.1002/cjas.1404

    Article  Google Scholar 

  59. *Dyer WG (1989) Integrating professional management into a family owned business. Family Bus Rev 2(3):221–235. https://doi.org/10.1111/j.1741-6248.1989.00221.x

    Article  Google Scholar 

  60. *Edwards T, Meliou E (2015) Explaining leadership in family firms: reflexivity, social conditioning and institutional complexity. Hum Relat 68(8):1271–1289. https://doi.org/10.1177/0018726714554468

    Article  Google Scholar 

  61. Eisenhardt KM (1989) Agency theory: an assessment and review. Acad Manag Rev 14(1):57–74. https://doi.org/10.5465/amr.1989.4279003

    Article  Google Scholar 

  62. *Eklund J, Palmberg J, Wiberg D (2012) Inherited corporate control and returns on investment. Small Bus Econ 41(2):419–431. https://doi.org/10.1007/s11187-012-9432-1

    Article  Google Scholar 

  63. Falkner EM, Hiebl MRW (2015) Risk management in SMEs: a systematic review of available evidence. J Risk Financ 16(2):122–144. https://doi.org/10.1108/JRF-06-2014-0079

    Article  Google Scholar 

  64. Fama EF, Jensen MC (1983) Separation of ownership and control. J Law Econ 26(2):301–325. https://doi.org/10.1086/467037

    Article  Google Scholar 

  65. *Fang H, Randolph RV, Memili E, Chrisman JJ (2015) Does size matter? The moderating effects of firm size on the employment of nonfamily managers in privately held family SMEs. Entrep Theory Pract 40(5):1017–1039. https://doi.org/10.1111/etap.12156

    Article  Google Scholar 

  66. *Fang H, Memili E, Chrisman JJ, Penney C (2016) Industry and information asymmetry: the case of the employment of non-family managers in small and medium-sized family firms. J Small Bus Manag. https://doi.org/10.1111/jsbm.12267

  67. *Feldman ER, Amit R, Villalonga B (2014) Corporate divestitures and family control. Strat Manag J 37(11):2389. https://doi.org/10.1002/smj.2329

    Article  Google Scholar 

  68. Feliu N, Botero IC (2016) Philanthropy in family enterprises: a review of literature. Family Bus Rev 29(1):121–141. https://doi.org/10.1177/0894486515610962

    Article  Google Scholar 

  69. *Filbeck G, Lee S (2000) Financial management techniques in family businesses. Family Bus Rev 13(3):201–216. https://doi.org/10.1111/j.1741-6248.2000.00201.x

    Article  Google Scholar 

  70. Franco-Santos M, Lucianetti L, Bourne M (2012) Contemporary performance measurement systems: a review of their consequences and a framework for research. Manag Account Res 23(2):79–119. https://doi.org/10.1016/j.mar.2012.04.001

    Article  Google Scholar 

  71. *Gallego F, Larrain B (2012) CEO compensation and large shareholders: evidence from emerging markets. J Comp Econ 40(4):621–642. https://doi.org/10.1016/j.jce.2012.02.003

    Article  Google Scholar 

  72. *Gallo M, Vilaseca A (1998) A financial perspective on structure, conduct, and performance in the family firm: an empirical study. Family Bus Rev 11(1):35–47. https://doi.org/10.1111/j.1741-6248.1998.00035.x

    Article  Google Scholar 

  73. Gedajlovic E, Carney M, Chrisman JJ, Kellermanns FW (2012) The adolescence of family firm research: taking stock and planning for the future. J Manag 38(4):1010–1037. https://doi.org/10.1177/0149206311429990

    Article  Google Scholar 

  74. Gersick KE, Davis JA, McCollom Hampton M, Lansberg I (1997) Generation to generation: life cycles of the family business. Harvard Business Press, Boston

    Google Scholar 

  75. Gersick K, Lansberg I, Desjardins M, Dunn B (1999) Stages and transitions: managing change in the family business. Family Bus Rev 12(4):287–297. https://doi.org/10.1111/j.1741-6248.1999.00287.x

    Article  Google Scholar 

  76. Ghadge A, Dani S, Kalawsky R (2012) Supply chain risk management: present and future scope. Int J Logist Manag 23(3):313–339. https://doi.org/10.1108/09574091211289200

    Article  Google Scholar 

  77. Goel S, Jones RJ (2016) Entrepreneurial Exploration and exploitation in family business: a systematic review and future directions. Family Bus Rev 29(1):94–120. https://doi.org/10.1177/0894486515625541

    Article  Google Scholar 

  78. *Gomez-Mejia LR, Nunez-Nickel M, Gutierrez I (2001) The role of family ties in agency contracts. Acad Manag J 44(1):81–95. https://doi.org/10.5465/3069338

    Article  Google Scholar 

  79. *Gomez-Mejia LR, Larraza-Kintana M, Makri M (2003) The determinants of executive compensation in family-controlled public corporations. Acad Manag J 46(2):226–237. https://doi.org/10.5465/30040616

    Article  Google Scholar 

  80. Gomez-Mejia LR, Cruz C, Berrone P, de Castro J (2011) The bind that ties: socioemotional wealth preservation in family firms. Acad Manag Ann 5(1):653–707. https://doi.org/10.1080/19416520.2011.593320

    Article  Google Scholar 

  81. *Gordini N (2016) Does the family status of the CFO matter to enhance family firm performance? Evidence from a sample of small and medium-sized Italian family firms. Int J Entrep Small Bus 28(1):36. https://doi.org/10.1504/IJESB.2016.075681

    Article  Google Scholar 

  82. *Gulbrandsen T (2005) Flexibility in Norwegian family-owned enterprises. Family Bus Rev 18(1):57–76. https://doi.org/10.1111/j.1741-6248.2005.00030.x

    Article  Google Scholar 

  83. *Gurd B, Thomas J (2012) Family business management: contribution of the CFO. Int J Entrep Behav Res 18(3):286–304. https://doi.org/10.1108/13552551211227684

    Article  Google Scholar 

  84. *Hall A, Nordqvist M (2008) Professional management in family businesses: toward an extended understanding. Family Bus Rev 21(1):51–69. https://doi.org/10.1111/j.1741-6248.2007.00109.x

    Article  Google Scholar 

  85. Hambrick DC, Mason PA (1984) Upper echelons: the organization as a reflection of its top managers. Acad Manag Rev 9(2):193–206. https://doi.org/10.5465/amr.1984.4277628

    Article  Google Scholar 

  86. Hernandez M (2012) Toward an understanding of the psychology of stewardship. Acad Manag Rev 37(2):172–193. https://doi.org/10.5465/amr.2010.0363

    Article  Google Scholar 

  87. *Hiebl MRW (2013) Bean counter or strategist? Differences in the role of the CFO in family and non-family businesses. J Family Bus Strat 4(2):147–161. https://doi.org/10.1016/j.jfbs.2013.02.003

    Article  Google Scholar 

  88. *Hiebl MRW (2014) A finance professional who understands the family: family firms’ specific requirements for non-family chief financial officers. RMS 8(4):465–494. https://doi.org/10.1007/s11846-013-0112-6

    Article  Google Scholar 

  89. Hiebl MRW (2015) Agency and stewardship attitudes of chief financial officers in private companies. Qual Res Financ Mark 7(1):4–23. https://doi.org/10.1108/QRFM-12-2012-0032

    Article  Google Scholar 

  90. Hiebl MRW (2018) Management accounting as a political resource for enabling embedded agency. Manag Account Res 38:22–38. https://doi.org/10.1016/j.mar.2017.03.003

    Article  Google Scholar 

  91. *Hiebl MRW, Feldbauer-Durstmüller B, Duller C, Neubauer H (2012) Institutionalisation of management accounting in family businesses—empirical evidence from Austria and Germany. J Enterp Culture 20(4):405–436. https://doi.org/10.1142/S0218495812500173

    Article  Google Scholar 

  92. *Hillier D, McColgan P (2009) Firm performance and managerial succession in family managed firms. J Business Financ Account 36(3–4):461–484. https://doi.org/10.1111/j.1468-5957.2009.02138.x

    Article  Google Scholar 

  93. *Hing LK, Cheok CK, Ping LP (2013) Robert Kuok: family, dialect, and state in the making of a malaysian magnate. Aust Econ Hist Rev 53(3):268–291. https://doi.org/10.1111/aehr.12014

    Article  Google Scholar 

  94. *Huybrechts J, Voordeckers W, Lybaert N (2013) Entrepreneurial risk taking of private family firms: the influence of a nonfamily CEO and the moderating effect of CEO tenure. Family Bus Rev 26(2):161–179. https://doi.org/10.1177/0894486512469252

    Article  Google Scholar 

  95. *Jaskiewicz P, Luchak AA (2013) Explaining performance differences between family firms with family and nonfamily CEOs: it’s the nature of the tie to the family that counts! Entrep Theory Pract 37(6):1361–1367. https://doi.org/10.1111/etap.12070

  96. *Jayaram J, Dixit M, Motwani J (2014) Supply chain management capability of small and medium sized family businesses in India: a multiple case study approach. Int J Prod Econ 147:472–485. https://doi.org/10.1016/j.ijpe.2013.08.016

    Article  Google Scholar 

  97. Jensen MC, Meckling WH (1976) Theory of the firm: managerial behavior, agency costs and ownership structure. J Financ Econ 3(4):305–360. https://doi.org/10.1016/0304-405X(76)90026-X

    Article  Google Scholar 

  98. Jesson JK, Matheson L, Lacey FM (2011) Doing Your literature review: traditional and systematic techniques. Sage, London

    Google Scholar 

  99. *Ji Y (2015) Loyalty of professional managers in chinese family enterprises: the determinants and formation mechanism. Anthropologist 19(2):323–332. https://doi.org/10.1080/09720073.2015.11891665

    Article  Google Scholar 

  100. *Kang HC, Kim J (2016) Why do family firms switch between family CEOs and non-family professional CEO? Rev Account Financ 15(1):45–64. https://doi.org/10.1108/RAF-03-2015-0032

    Article  Google Scholar 

  101. *Kang HC, Anderson RM, Eom KS, Kang SK (2017) Controlling shareholders value, long-run firm value and short-term performance. J Corp Financ 43:340–353. https://doi.org/10.1016/j.jcorpfin.2017.01.013

    Article  Google Scholar 

  102. *Khalil SK, Cohen JR, Trompeter GM (2011) Auditor resignation and firm ownership structure. Account Horiz 25(4):703–727. https://doi.org/10.2308/acch-50061

    Article  Google Scholar 

  103. Klasa S (2007) Why do controlling families of public firms sell their remaining ownership stake? J Financ Q Anal 42(2):339–367. https://doi.org/10.1017/S0022109000003306

    Article  Google Scholar 

  104. Klein SB, Bell FA (2007) Non-family executives in family businesses: a literature review. Electron J Family Bus Stud 1(1):19–37

    Google Scholar 

  105. Kontinen T, Ojala A (2010) The internationalization of family businesses: a review of extant research. J Family Bus Strat 1(2):97–107

    Article  Google Scholar 

  106. *Kowalewski O, Talavera O, Stetsyuk I (2010) Influence of family involvement in management and ownership on firm performance: evidence from Poland. Family Bus Rev 23(1):45–59. https://doi.org/10.1177/0894486509355803

    Article  Google Scholar 

  107. Kraaijenbrink J, Spender J-C, Groen AJ (2010) The resource-based view: a review and assessment of its critiques. J Manag 36(1):349–372. https://doi.org/10.1177/0149206309350775

    Article  Google Scholar 

  108. *Kraus S, Mensching H, Calabrò A, Cheng C, Filser M (2016) Family firm internationalization: a configurational approach. J Bus Res 69(11):5473–5478. https://doi.org/10.1016/j.jbusres.2016.04.158

    Article  Google Scholar 

  109. Kunisch S, Menz M, Bartunek JM, Cardinal LB, Denyer D (2018) Feature topic at organizational research methods: how to conduct rigorous and impactful literature reviews? Organ Res Methods 21(3):519–523. https://doi.org/10.1177/1094428118770750

    Article  Google Scholar 

  110. *Lardon A, Deloof M, Jorissen A (2017) Outside CEOs, board control and the financing policy of small privately held family firms. J Family Bus Strat 8(1):29–41. https://doi.org/10.1016/j.jfbs.2017.01.002

    Article  Google Scholar 

  111. Leppäaho T, Plakoyiannaki E, Dimitratos P (2015) The case study in family business: an analysis of current research practices and recommendations. Family Bus Rev 29(2):159–173. https://doi.org/10.1177/0894486515614157

    Article  Google Scholar 

  112. *Lien Y, Li S (2014) Professionalization of family business and performance effect. Family Bus Rev 27(4):346–364. https://doi.org/10.1177/0894486513482971

    Article  Google Scholar 

  113. *Lin S, Hu S (2007) A family member or professional management? The choice of a CEO and its impact on performance. Corp Gov Int Rev 15(6):1348–1362. https://doi.org/10.1111/j.1467-8683.2007.00650.x

    Article  Google Scholar 

  114. Litz RA, Pearson AW, Litchfield S (2012) Charting the future of family business research: perspectives from the field. Family Bus Rev 25(1):16–32. https://doi.org/10.1177/0894486511418489

    Article  Google Scholar 

  115. *López-Delgado P, Diéguez-Soto J (2015) Lone founders, types of private family businesses and firm performance. J Family Bus Strat 6(2):73–85. https://doi.org/10.1016/j.jfbs.2014.11.001

    Article  Google Scholar 

  116. *McConaughy DL (2000) Family CEOs vs. nonfamily CEOs in the family-controlled firm: an examination of the level and sensitivity of pay to performance. Family Bus Rev 13(2):121–131. https://doi.org/10.1111/j.1741-6248.2000.00121.x

  117. McKelvey M, Lassen AH (2013) Knowledge intensive entrepreneurship: engaging, learning and evaluating venture creation. Edward Elgar, Cheltenham

    Google Scholar 

  118. *McVey H, Draho J (2005) U.S. family-run companies-they may be better than you think. J Appl Corp Financ 17(4):134–143. https://doi.org/10.1111/j.1745-6622.2005.00067.x

  119. *Mehrotra V, Morck R, Shim J, Wiwattanakantang Y (2013) Adoptive expectations: rising sons in Japanese family firms. J Financ Econ 108(3):840–854. https://doi.org/10.1016/j.jfineco.2013.01.011

    Article  Google Scholar 

  120. *Mensching H, Calabrò A, Eggers F, Kraus S (2016) Internationalisation of family and non-family firms: a conjoint experiment among CEOs. Eur J Int Manag 10(5):581. https://doi.org/10.1504/EJIM.2016.078795

    Article  Google Scholar 

  121. *Michiels A (2017) Formal compensation practices in family SMEs. J Small Bus Enterp Dev 24(1):88–104. https://doi.org/10.1108/JSBED-12-2015-0173

    Article  Google Scholar 

  122. *Michiels A, Voordeckers W, Lybaert N, Steijvers T (2013) CEO compensation in private family firms: pay-for-performance and the moderating role of ownership and management. Family Bus Rev 26(2):140–160. https://doi.org/10.1177/0894486512454731

    Article  Google Scholar 

  123. Miller D, Le-Breton Miller I, Lester RH, Canella AA (2007) Are family firms really superior performers? J Corp Financ 13(5):830–858. https://doi.org/10.1016/j.jcorpfin.2007.03.004

    Article  Google Scholar 

  124. *Miller D, Le-Breton-Miller IL, Minichilli A, Corbetta G, Pittino D (2014) When do non-family CEOs outperform in family firms? Agency and behavioural agency perspectives. J Manag Stud 51(4):547–572. https://doi.org/10.1111/joms.12076

    Article  Google Scholar 

  125. *Minetti R, Murro P, Zhu SC (2015) Family firms, corporate governance and export. Economica 82:1177–1216. https://doi.org/10.1111/ecca.12156

    Article  Google Scholar 

  126. *Minichilli A, Corbetta G, MacMillan IC (2010) Top management teams in family-controlled companies: ‘familiness’, ‘faultlines’, and their impact on financial performance. J Manag Stud 47(2):205–222. https://doi.org/10.1111/j.1467-6486.2009.00888.x

    Article  Google Scholar 

  127. *Minichilli A, Brogi M, Calabrò A (2015) Weathering the storm: family ownership, governance, and performance through the financial and economic crisis. Corp Gov Int Rev 24(6):552–568. https://doi.org/10.1111/corg.12125

    Article  Google Scholar 

  128. *Mitter C, Duller C, Feldbauer-Durstmüller B, Kraus S (2014) Internationalization of family firms: the effect of ownership and governance. RMS 8(1):1–28. https://doi.org/10.1007/s11846-012-0093-x

    Article  Google Scholar 

  129. Moores K (2009) Paradigms and theory building in the domain of business families. Family Bus Rev 22(2):167–180. https://doi.org/10.1177/0894486509333372

    Article  Google Scholar 

  130. *Morris MH, Allen JA, Kuratko DF, Brannon D (2010) Experiencing family business creation: differences between founders, nonfamily managers, and founders of nonfamily firms. Entrep Theory Pract 34(6):1057–1084. https://doi.org/10.1111/j.1540-6520.2010.00413.x

    Article  Google Scholar 

  131. O’Boyle EH, Pollack JM, Rutherford MW (2012) Exploring the relation between family involvement and firms’ financial performance: a meta-analysis of main and moderator effects. J Bus Ventur 27(1):1–18. https://doi.org/10.1016/j.jbusvent.2011.09.002

    Article  Google Scholar 

  132. *Pazzaglia F, Mengoli S, Sapienza E (2013) Earnings quality in acquired and nonacquired family firms: a socioemotional wealth perspective. Family Bus Rev 26(4):374–386. https://doi.org/10.1177/0894486513486343

    Article  Google Scholar 

  133. *Pongelli C, Caroli MG, Cucculelli M (2016) Family business going abroad: the effect of family ownership on foreign market entry mode decisions. Small Bus Econ 47(3):787–801. https://doi.org/10.1007/s11187-016-9763-4

    Article  Google Scholar 

  134. *Poza EJ, Alfred T, Maheshwari A (1997) Stakeholder perceptions of culture and management practices in family and family firms—a preliminary report. Family Bus Rev 10(2):135–155. https://doi.org/10.1111/j.1741-6248.1997.00135.x

    Article  Google Scholar 

  135. *Poza EJ, Hanlon S, Kishida R (2004) Does the family business interaction factor represent a resource or a cost? Family Bus Rev 17(2):99–118. https://doi.org/10.1111/j.1741-6248.2004.00007.x

    Article  Google Scholar 

  136. *Prencipe A, Bar-Yosef S, Mazzola P, Pozza L (2011) Income smoothing in family-controlled companies: evidence from Italy. Corp Gov Int Rev 19(6):529–546. https://doi.org/10.1111/j.1467-8683.2011.00856.x

    Article  Google Scholar 

  137. Pukall TJ, Calabrò A (2014) The internationalization of family firms: a critical review and integrative model. Family Bus Rev 27(2):103–125. https://doi.org/10.1177/0894486513491423

    Article  Google Scholar 

  138. *Robb AJ (2006) Ernest Adams Ltd: the demise of a family business. Account Hist 11(3):357–379. https://doi.org/10.1177/1032373206065866

    Article  Google Scholar 

  139. Sageder M, Feldbauer-Durstmüller B (2018) Management control in multinational companies: a systematic literature review. Rev Manag Sci. https://doi.org/10.1007/s11846-018-0276-1

  140. Sageder M, Mitter C, Feldbauer-Durstmüller B (2018) Image and reputation of family firms: a systematic literature review of the state of research. RMS 12(1):335–377. https://doi.org/10.1007/s11846-016-0216-x

    Article  Google Scholar 

  141. *Salvato C, Chirico F, Sharma P (2010) A farewell to the business: championing exit and continuity in entrepreneurial family firms. Entrep Reg Dev 22(3–4):321–348. https://doi.org/10.1080/08985621003726192

    Article  Google Scholar 

  142. *Salvato C, Minichilli A, Piccarreta R (2012) Faster route to the CEO suite: nepotism or managerial proficiency? Family Bus Rev 25(2):206–224. https://doi.org/10.1177/0894486511427559

    Article  Google Scholar 

  143. *Scholes L, Wright M, Westhead P, Bruining H (2010) Strategic changes in family firms post management buyout: ownership and governance issues. Int Small Bus J 28(5):505–521. https://doi.org/10.1177/0266242610370390

    Article  Google Scholar 

  144. *Sciascia S, Mazzola P (2008) Family involvement in ownership and management: exploring nonlinear effects on performance. Family Bus Rev 21(4):331–345. https://doi.org/10.1111/j.1741-6248.2008.00133.x

    Article  Google Scholar 

  145. Sharma P (2004) An overview of the field of family business studies: current status and directions for the future. Family Bus Rev 17(1):1–36. https://doi.org/10.1111/j.1741-6248.2004.00001.x

    Article  Google Scholar 

  146. Siebels J-F, zu Knyphausen-Aufseß D (2012) A review of theory in family business research: the implications for corporate governance. Int J Manag Rev 14(3):280–304. https://doi.org/10.1111/j.1468-2370.2011.00317.x

    Article  Google Scholar 

  147. *Singla C, Veliyath R, George R (2014) Family firms and internationalization-governance relationships: evidence of secondary agency issues. Strat Manag J 35(4):606–616. https://doi.org/10.1002/smj.2111

    Article  Google Scholar 

  148. *Sonfield MC, Lussier RN (2009a) Non-family-members in the family business management team: a multinational investigation. Int Entrep Manag J 5(4):395–415. https://doi.org/10.1007/s11365-009-0109-4

    Article  Google Scholar 

  149. *Sonfield MC, Lussier RN (2009b) Family-member and non-family-member managers in family businesses. J Small Bus and Enterp Dev 16(2):196–209. https://doi.org/10.1108/14626000910956010

    Article  Google Scholar 

  150. Songini L (2006) The professionalization of family firms: theory and practice. In: Poutziouris PZ, Smyrnios KX, Klein SB (eds) Handbook of research on family business. Edward Elgar, Cheltenham, pp 269–297

    Google Scholar 

  151. *Sraer D, Thesmar D (2007) Performance and behavior of family firms: evidence from the French stock market. J Eur Econ Assoc 5(4):709–751. https://doi.org/10.1162/JEEA.2007.5.4.709

    Article  Google Scholar 

  152. *Stanley LJ (2010) Emotions and family business creation: an extension and implications. Entrep Theory Pract 34(6):1085–1092. https://doi.org/10.1111/j.1540-6520.2010.00414.x

    Article  Google Scholar 

  153. Steiger T, Duller C, Hiebl MRW (2015) No consensus in sight: an analysis of ten years of family business definitions in empirical research studies. J Enterp Culture 23(01):25–62. https://doi.org/10.1142/S0218495815500028

    Article  Google Scholar 

  154. *Steijvers T, Niskanen M (2013) The determinants of cash holdings in private family firms. Account Financ 53(2):537–560. https://doi.org/10.1111/j.1467-629X.2012.00467.x

    Article  Google Scholar 

  155. Tabor W, Chrisman JJ, Madison K, Vardaman JM (2017) nonfamily members in family firms: a review and future research agenda. Family Bus Rev. https://doi.org/10.1177/0894486517734683

  156. Tagiuri R, Davis J (1996) Bivalent attributes of the family firm. Family Bus Rev 9(2):199–208. https://doi.org/10.1111/j.1741-6248.1996.00199.x

    Article  Google Scholar 

  157. Tranfield D, Denyer D, Smart P (2003) Towards a methodology for developing evidence-informed management knowledge by means of systematic review. Br J Manag 14(3):207–222. https://doi.org/10.1111/1467-8551.00375

    Article  Google Scholar 

  158. Tretbar T, Reimer M, Schäffer U (2016) Upper echelons in family firms: what we know and still can learn about family-TMT-involvement. In: Kellermanns F, Hoy F (eds) The routledge companion to family business. Routledge, London, pp 90–117

    Google Scholar 

  159. *Tsai W, Hung J, Kuo Y, Kuo L (2006) CEO tenure in Taiwanese family and nonfamily firms: an agency theory perspective. Family Bus Rev 19(1):11–28. https://doi.org/10.1111/j.1741-6248.2006.00057.x

    Article  Google Scholar 

  160. *Tsai W, Kuo Y, Hung J (2009) Corporate diversification and CEO turnover in family businesses: self-entrenchment or risk reduction? Small Bus Econ 32(1):57–76. https://doi.org/10.1007/s11187-007-9073-y

    Article  Google Scholar 

  161. *Tsui-Auch LS (2003) Learning strategies of small and medium-sized chinese family firms: a comparative study of two suppliers in Singapore. Manag Learn 34(2):201–220. https://doi.org/10.1177/1350507603034002003

    Article  Google Scholar 

  162. *Tsui-Auch LS (2004) The professionally managed family-ruled enterprise: ethnic Chinese business in Singapore. J Manag Stud 41(4):693–723. https://doi.org/10.1111/j.1467-6486.2004.00450.x

    Article  Google Scholar 

  163. *Tsui-Auch LS, Lee Y (2003) The state matters: management models of Singaporean Chinese and Korean business groups. Organ Stud 24(4):507–534. https://doi.org/10.1177/0170840603024004001

    Article  Google Scholar 

  164. *Vandekerkhof P, Steijvers T, Hendriks W, Voordeckers W (2015) The effect of organizational characteristics on the appointment of nonfamily managers in private family firms: the moderating role of socioemotional wealth. Family Bus Rev 28(2):104–122. https://doi.org/10.1177/0894486513514274

    Article  Google Scholar 

  165. *Visintin F, Pittino D, Minichilli A (2017) Financial performance and non-family CEO turnover in private family firms under different conditions of ownership and governance. Corp Gov Int Rev 25(5):312–337. https://doi.org/10.1111/corg.12201

    Article  Google Scholar 

  166. Wang CL, Chugh H (2014) Entrepreneurial learning: past research and future challenges. Int J Manag Rev 16(1):24–61. https://doi.org/10.1111/ijmr.12007

    Article  Google Scholar 

  167. Welter F (2011) Contextualizing entrepreneurship: conceptual challenges and ways forward. Entrep Theory Pract 35(1):165–184. https://doi.org/10.1111/j.1540-6520.2010.00427.x

    Article  Google Scholar 

  168. *Westhead P, Cowling M, Howorth C (2001) The development of family companies: management and ownership imperatives. Family Bus Rev 14(4):369–385. https://doi.org/10.1111/j.1741-6248.2001.00369.x

    Article  Google Scholar 

  169. Wright M, Chrisman JJ, Chua JH, Steier LP (2014) Family enterprise and context. Entrep Theory Pract 44(6):1247–1260. https://doi.org/10.1111/etap.12122

    Article  Google Scholar 

  170. *Wu C (2013) Family ties, board compensation and firm performance. J Multinatl Financ Manag 23(4):255–271. https://doi.org/10.1016/j.mulfin.2013.01.001

    Article  Google Scholar 

  171. *Yang M (2010) The impact of controlling families and family CEOs on earnings management. Family Bus Rev 23(3):266–279. https://doi.org/10.1177/0894486510374231

    Article  Google Scholar 

  172. *Yeoh P (2014) Internationalization and performance outcomes of entrepreneurial family SMEs: the role of outside CEOs, technology sourcing, and innovation. Thunderbird Int Bus Rev 56(1):77–96. https://doi.org/10.1002/tie.21597

    Article  Google Scholar 

  173. *Young C, Tsai L (2008) The sensitivity of compensation to social capital: Family CEOs vs. nonfamily CEOs in the family business groups. J Bus Res 61(4):363–374. https://doi.org/10.1016/j.jbusres.2007.07.022

  174. Yu A, Lumpkin GT, Sorenson RL, Brigham KH (2012) The landscape of family business outcomes: a summary and numerical taxonomy of dependent variables. Family Bus Rev 25(1):33–57. https://doi.org/10.1177/0894486511430329

    Article  Google Scholar 

  175. *Zhang J, Ma H (2009) Adoption of professional management in Chinese family business: a multilevel analysis of impetuses and impediments. Asia Pac J Manag 26(1):119–139. https://doi.org/10.1007/s10490-008-9099-y

    Article  Google Scholar 

  176. *Zhou J, Tam OK, Yu P (2013) An investigation of the role of family ownership, control and management in listed Chinese family firms. Asian Bus Manag 12(2):197–225. https://doi.org/10.1057/abm.2012.40

    Article  Google Scholar 

  177. *Zhu H, Chen CC, Li X, Zhou Y (2013) From personal relationship to psychological ownership: the importance of manager-owner relationship closeness in family businesses. Manag Organ Rev 9(2):295–318. https://doi.org/10.1111/more.12001

    Article  Google Scholar 

  178. *Zona F (2016) CEO leadership and board decision processes in family-controlled firms: comparing family and non-family CEOs. Small Bus Econ 47(3):735–753. https://doi.org/10.1007/s11187-016-9764-3

    Article  Google Scholar 

Download references

Acknowledgements

This paper is part of the second author’s doctoral dissertation. Previous versions of the paper were presented at the 2016 edition of FiFu Dachli conference, the 2017 edition of the International Family Enterprise Research Academy (IFERA) 2017 annual conference and the 2017 edition of the Interdisciplinary European Conference on Entrepreneurship Research (IECER). In addition, the paper was presented in research seminars at Johannes Kepler University Linz and the University of Siegen. We would like to thank the participants of all these events and two anonymous reviewers for highly valuable comments and suggestions that have helped us in improving earlier versions of this paper.

Author information

Affiliations

Authors

Corresponding author

Correspondence to Martin R.W. Hiebl.

Appendix

Appendix

See Tables 10, 11 and 12.

Table 10 Keyword search and selection process
Table 11 Overview of articles included in the sample
Table 12 Details of articles included in the sample

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Hiebl, M.R., Li, Z. Non-family managers in family firms: review, integrative framework and future research agenda. Rev Manag Sci 14, 763–807 (2020). https://doi.org/10.1007/s11846-018-0308-x

Download citation

Keywords

  • Non-family manager
  • Family manager
  • Family firm
  • Integration
  • Performance

JEL Classification

  • L10
  • L20
  • M10