In this paper, we examine differences in centralization and delegation practices of family and non-family firms. Using Aston studies measures, we examine specific types of decisions and the level of authority involved in decision making by owner-managers. We use Rasch analysis to examine the concentration of authority in a sample of 124 small- and medium-sized firms. We find that family firms maintain more centralized decision making and delegate differently than their non-family counterparts. Whereas family firms prioritize centralizing operational issues, non-family firms centralize employment issues more. Our findings have implications for understanding the distinctiveness and professionalization of family firms.
Small Business Economics – Springer Journals
Published: Jun 30, 2016
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