Title: Familiness vs. family ownership and control: what is the impact on the performance of a firm? Evidence from the field

Authors: Davide Sola; Roberto Quaglia; Jerome Couturier; Angela Lo Pinto

Addresses: ESCP Europe, 527 Finchley Road, London, NW3 7BG, UK. ' ESCP Europe, 527 Finchley Road, London, NW3 7BG, UK. ' ESCP Europe, 527 Finchley Road, London, NW3 7BG, UK. ' Bellside House, Elthorne Road, London, N19 4AG, UK

Abstract: This paper investigates the differing impact on the performance of family ownership and control in relation to 'familiness'. In particular, it aims to analyse the impact of the loss of family ownership and control in two different scenarios: diffusion of familiness, and not diffused familiness within the organisation. Grounded Theory methodology was applied with the intention of generating a conceptual model related to the phenomenon. Therefore, evidence from the examination of prior knowledge and real-life observations are contrasted, searching for elements that supported or disproved the emergent theoretical construct. According to our conceptual model, 'Four Pillars of Positive Familiness Effect' - long-term commitment, reciprocal altruism, trust, and collective values and shared vision - if present and diffused within the organisation, determine the positive effect of family control on the performance of the firm. After the loss of family control, the effect on the performance would depend on the pre-existence of those characteristics.

Keywords: family ownership; family control; positive familiness; grounded theory; prior knowledge; real-life observations; theoretical constructs; long-term commitment; reciprocal altruism; trust; collective values; shared vision; Aqua d'Italia; Italy; mineral waters; soft drinks; Vita Water; management practice; family businesses; competiveness; business performance.

DOI: 10.1504/IJMP.2012.050313

International Journal of Management Practice, 2012 Vol.5 No.4, pp.326 - 342

Published online: 14 Nov 2012 *

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