Title: The relation between performance and family involvement an exploration into the non-linear effects during the life-stage of Dutch firms
Authors: Joost Ernst; Sascha Kraus; Ilse Matser
Addresses: Utrecht University School of Economics (USE)/UCEME, Janskerkhof 12, NL-3512 BL, Utrecht, The Netherlands. ' University of Liechtenstein, Fürst-Franz-Josef-Strasse, LI-9490 Vaduz, Liechtenstein; Utrecht University, Janskerkhof 12, NL-3512 BL Utrecht, The Netherlands. ' Utrecht University School of Economics (USE)/UCEME, Janskerkhof 12, NL-3512 BL, Utrecht, The Netherlands
Abstract: This article investigates the performances of family firms in general, family involvement in management (FIM), and ownership in particular. Using a sample of 495 Dutch non-listed firms, this article finds an inverse U-shaped relation over the age of the family firms in general which seems to be explained by FIM. There is also an indication that the effect of family involvement in ownership (FIO) is insignificant. This article provides useful insight into the potential to allow for interaction between time, and also indicates that size has the same potential to explain the relative performance of family firms versus non family firms.
Keywords: family involvement; non-linear effects; life-stages; Netherlands; Holland; Dutch firms; business performance; family firms; family ownership; non-listed companies; inverse relation; U-shaped relation; time interactions; firm size; relative performance; non-family firms; entrepreneurship; innovation management.
International Journal of Entrepreneurship and Innovation Management, 2012 Vol.15 No.3, pp.198 - 215
Received: 16 Oct 2009
Accepted: 17 Jun 2010
Published online: 18 Apr 2012 *