Family involvement in a hierarchical culture: Effect of dispersion of family ownership control and family member tenure on firm performance in Chinese family owned firms

Sanjay Goel, Xiaogang He, Ranjan Karri

Research output: Contribution to journalArticlepeer-review

23 Scopus citations

Abstract

We tested the effect of control rights dispersion on firm performance in Chinese family-owned firms. Developing arguments based on balancing cultural norms of hierarchy and respect for elders with providing tangible incentives to express crucial divergent views in a culturally acceptable manner, we hypothesized that high dispersion of control among family members in a Chinese family firm would be associated with positive firm performance and the tenure of family members would positively moderate this relationship. Results generally support our model, and suggest that involvement of family members in a variety of cultural contexts is an important direction to advance the field.

Original languageEnglish (US)
Pages (from-to)199-206
Number of pages8
JournalJournal of Family Business Strategy
Volume2
Issue number4
DOIs
StatePublished - Dec 1 2011

Keywords

  • Chinese culture
  • Chinese family business
  • Dispersion of ownership control
  • Family member

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