Asymmetric factional groups in family firms: When is family faultline beneficial to the firm?

Li, W and Lau, D 2014, 'Asymmetric factional groups in family firms: When is family faultline beneficial to the firm?', in Academy of Management Proceedings, , , pp. 1-6.


Document type: Conference Paper
Collection: Conference Papers

Title Asymmetric factional groups in family firms: When is family faultline beneficial to the firm?
Author(s) Li, W
Lau, D
Year 2014
Proceedings title Academy of Management Proceedings
Publisher Academy of Management
Place of publication United States
Start page 1
End page 6
Total pages 6
Abstract We develop the concept of asymmetric factional groups, or those in which involve both a factional group and independent entities. We take top management teams in family businesses as an example to illustrate how asymmetric factional groups might have an impact on firm performance. We extend group faultline model by arguing that asymmetric factional groups possess pre-established faultlines between family members and nonfamily members. We propose that large demographic faultlines in such groups would benefit firm performance, and these benefits are contingent on bifurcation bias showed by the controlling family, and regional development level of intermediate institutions. We test our model using data from Chinese listed family firms. Results provide strong support for our propositions.
Subjects Entrepreneurship
Organisation and Management Theory
ISSN 0065-0668
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