Impact of informal institutions on the prevalence, strategy, and performance of family firms: A meta-analysis

Pascual Berrone, Patricio Duran, Luis Gómez-Mejía, Pursey P.M.A.R. Heugens, Tatiana Kostova, Marc van Essen

Research output: Contribution to journalArticlepeer-review

74 Scopus citations

Abstract

Family-controlled firms (FCFs)’ prevalence, strategies, and performance differ across countries. We explain these differences through the lens of informal institutions, suggesting that different countries have different levels of appreciation for family business. To capture this effect, we introduce the construct of family business legitimacy (FBL) and an associated index (FBLI). We empirically measure FBLI scores for 83 countries spanning both developed and emerging economies. By combining meta-analytic and archival data, we show that FCFs prevail, follow unique strategies, and outperform non-FCFs in countries with high FBLI scores. As a new contingency variable, FBL advances the literature on the informal institutional embeddedness of organizations and family business.

Original languageEnglish (US)
Pages (from-to)1153-1177
Number of pages25
JournalJournal of International Business Studies
Volume53
Issue number6
DOIs
StatePublished - Aug 2022

Keywords

  • family firm prevalence
  • family-controlled firms
  • firm performance
  • informal institutions
  • meta-analysis
  • strategic decisions

ASJC Scopus subject areas

  • Business and International Management
  • General Business, Management and Accounting
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

Fingerprint

Dive into the research topics of 'Impact of informal institutions on the prevalence, strategy, and performance of family firms: A meta-analysis'. Together they form a unique fingerprint.

Cite this