Non-family Executives in Family Businesses : a Literature Review

Sabine B. Klein · Franz-Albert Bell

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Family Business Performance and Succession Corporate Finance and Governance Entrepreneurship Studies and Influences

Abstract

The role of non-family executives in family businesses is under-researched in comparison with its importance. Reviewing the existing literature serves as a startingpoint for promoting future research. Based on a literature analysis, we develop a model for the interaction process between a family owner and a non-family executive. The main contributions for the non-family executive in family business literature are presented and structured following this interaction process. Finally, potential and unanswered questions help determine directions of future research.

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References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1984A resource‐based view of the firm 1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 2017A Theory of Cognitive Dissonance 1995The Theory of the Growth of the Firm 1989Agency Theory: An Assessment and Review 1933The Modern Corporation and Private Property 1997TOWARD A STEWARDSHIP THEORY OF MANAGEMENT

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2018Profit efficiency and its determinants in small and medium-sized enterprises in Spain 2011How to pay a non-family manager in a family business – a multi-task principal-agent model 2020From family successors to successful business leaders: A qualitative study of how high-quality relationships develop in family businesses 2019Non-family CEOs in family firms: Spotting gaps and challenging assumptions for a future research agenda 2010Experiencing Family Business Creation: Differences between Founders, Nonfamily Managers, and Founders of Nonfamily Firms

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