Do family ties shape the performance consequences of diversification? Evidence from the European Union

This paper examines the moderating effect of family involvement in ownership and control on the relationship between diversification strategies – both product and international diversification – and corporate performance. We argue that this moderating effect is related to the distinctive characteris...

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Bibliographic Details
Published in:	Journal of world business : JWB Vol. 47; no. 3; pp. 469 - 477
Main Authors:	Muñoz-Bullón, Fernando, Sánchez-Bueno, Maria J.
Format:	Journal Article
Language:	English
Published:	Greenwich Elsevier Inc 01-07-2012 Elsevier Science Ltd
Subjects:	Diversification European Union Families & family life Family firms Family owned businesses International diversification Joint products Organization theory Organizational behaviour Organizational effectiveness Ownership and control Product diversification Profitability Studies Western Europe Europe EU Performance Family firms International diversification Product diversification
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Summary:	This paper examines the moderating effect of family involvement in ownership and control on the relationship between diversification strategies – both product and international diversification – and corporate performance. We argue that this moderating effect is related to the distinctive characteristics of family firms compared to non-family firms. The empirical evidence is provided by a sample of firms from the European Union during the 2005–2009 time period. Our results found that family firms are more profitable than non-family firms when they engage in joint product and international diversification.
Bibliography:	ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23
ISSN:	1090-9516 1878-5573
DOI:	10.1016/j.jwb.2011.05.013