Types of shareholders in family-owned firms

Family-owned businesses, especially later-generation firms, are supported by different types of stakeholders: shareholders, investors and owners. There’s a fourth category – speculator – that I’m omitting since it’s not worth mentioning. In my view, there is no wealth creation derived from speculation, which moreover, rarely occurs in family firms. So what are the differences between […]

How do informal institutions influence family-owned firms?

As outlined in my previous post, the prevalence, strategy and performance of family-controlled firms (FCFs) differs across countries, yet research has primarily underscored formal institutions like regulations and legal frameworks to justify these differences. In our research, we widened the scope to explore how informal systems such as social ordering systems, hierarchies and values might […]

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4 mechanisms to boost stakeholder engagement

There’s no doubt about it: companies that genuinely aspire to leave a positive and long-lasting mark in the world need to engage their stakeholders. But what are the most effective strategies to achieve this aim? To answer this question, I joined forces with Prof. Anabella Dávila from EGADE Business School (TEC de Monterrey) and IESE […]

The impact of informal institutions in family firms

Family-controlled firms (FCFs) are the world’s most common organizational structure, with distinct strategies and characteristics that set them apart from non-family-controlled firms. Around the world, the prevalence, strategy and financial success of family-owned firms all vary but what are the core drivers of these differences? To date, research has largely focused on the impact of […]