Show Summary Details

Page of

Printed from Oxford Research Encyclopedias, Business and Management. Under the terms of the licence agreement, an individual user may print out a single article for personal use (for details see Privacy Policy and Legal Notice).

date: 01 October 2022

Familization of Lone-Founder Firms: Highlights from Asian Firmslocked

Familization of Lone-Founder Firms: Highlights from Asian Firmslocked

  • Yijie Min, Yijie MinGuanghua School of Management, Peking University
  • Yanlong ZhangYanlong ZhangGuanghua School of Management, Peking University
  •  and Sun Hyun ParkSun Hyun ParkGraduate School of Business, Seoul National University

Summary

Family firms can either be “born” or “made.” Although previous studies suggest that most of the family firms in the US context are “born,” family firms can be “made” by the founder’s decision to invite family members to the management. We conceptualize this process of family firm emergence as familization, during which lone-founders’ family influence increases as more family members are appointed to director and/or executive positions. Transition from lone-founder-control to family-control is often accompanied by significant changes in governance structure, strategic decisions, and firm performance. This work documents the pervasiveness and heterogeneity of the familization process and proposes an analytical framework covering four research areas associated with the phenomenon: the antecedents that motivate founders to choose the familization path, the familization process involving internal and external firm constituents, the consequences of familization decision, and the potential moderators of the familization impact. To better understand these theoretical perspectives, an explorative empirical investigation is conducted based on a sample of Chinese-listed firms that experienced familization. Familization cases in other Asian emerging economies were also discussed in comparison with the family firms in Western economies.

Subjects

  • Business Policy and Strategy
  • Entrepreneurship
  • Organization Theory

You do not currently have access to this article

Login

Please login to access the full content.

Subscribe

Access to the full content requires a subscription