2008/01/12 by Harold James · 1 citation
Business, Management and Accounting · #Family Business Performance and Succession
paper · doi:10.2202/1932-0213.1031
crossref issued 2008/01/12 · crossref published 2008/01/12 · crossref published-print 2008/01/12 · crossref created 2008/07/31 · crossref deposited 2021/02/27 · openalex created_date 2025/10/10 · crossref indexed 2026/01/06 · openalex updated_date 2026/07/01
Family firms are very prominent in many parts of the world, including in many of the most dynamic emerging markets. They are often thought to be associated with poor corporate and political governance. This article examines the debate about their durability and efficiency, using material drawn from the long experience of continental Europe and sketches out an ideal type of the family, in which there is a historical experience of entrepreneurship, a brand, and a network built around family enterprise. It then tests various common explanations for the prevalence of family firms, including Roman law versus common law traditions, tax incentives, share voting privileges, and inheritance law; and finds that each applies only in a quite particular historical epoch. Finally, the article suggests that family businesses offer advantages that are most apparent at times of shocks and discontinuities, and that they are thus a response to uneven development.