Managerial Family Ties and Employee Risk Bearing in Family Firms: Evidence from Spanish Car Dealers

Luis Gomez-Mejia, Martin Larraza-Kintana, Jose Moyano-Fuentes, Shainaz Firfiray

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

This article argues that family firms in which the top management team (TMT) is dominated by nonfamily managers are more likely to shift risk to employees through incentive pay schemes than family firms with TMTs dominated by family members. We also argue that this tendency is aggravated in firms of bigger size, as this condition makes nonfamily managers more vulnerable. We further note that differences between family- and non-family-dominated TMTs may lessen when the sales trend is negative. The analyses conducted on a sample of 219 family-controlled car dealerships in Spain confirm our expectations.

Original languageEnglish (US)
Pages (from-to)993-1007
Number of pages15
JournalHuman Resource Management
Volume57
Issue number5
DOIs
StatePublished - Sep 1 2018

Keywords

  • family firms
  • incentive pay
  • nonfamily managers
  • risk bearing
  • socioemotional wealth

ASJC Scopus subject areas

  • Applied Psychology
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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