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Home-based family firms, spousal ownership, and business exit: a transaction cost perspective

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Home-based family firms, spousal ownership, and business exit : a transaction cost perspective. / Madanoglu, Melih; Memili, Esra; De Massis, Alfredo Vittorio.

In: Small Business Economics, 07.01.2019.

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@article{bdf9c19e0e3243e98d408c7998927b5f,
title = "Home-based family firms, spousal ownership, and business exit: a transaction cost perspective",
abstract = "In this study, we compare family and non-family firms with respect to their exit due to financial reasons. We suggest that the principal dimensions of Transaction Cost Theory (TCT) (i.e., asset specificity, risk aversion, opportunism, and trust) may underlie governance decisions such as family vs. non-family firm and home-based spousal ownership in family firms which can consequently impact firm success/failure. Given the wide variations in the goals and internal structures of family firms, we specifically suggest that home-based family firms with spousal ownership will be less prone to exit than other firms. Indeed, the findings show that family firms are less likely to exit than non-family firms, and the interaction effects of spousal ownership and home-based business further reduce the exit probability of family firms. We conclude by discussing future research implications.",
keywords = "Family business, Family firms, Transaction cost theory, Trust, Governance, Business exit",
author = "Melih Madanoglu and Esra Memili and {De Massis}, {Alfredo Vittorio}",
year = "2019",
month = jan,
day = "7",
doi = "10.1007/s11187-018-00131-8",
language = "English",
journal = "Small Business Economics",
issn = "0921-898X",
publisher = "Springer New York LLC",

}

RIS

TY - JOUR

T1 - Home-based family firms, spousal ownership, and business exit

T2 - a transaction cost perspective

AU - Madanoglu, Melih

AU - Memili, Esra

AU - De Massis, Alfredo Vittorio

PY - 2019/1/7

Y1 - 2019/1/7

N2 - In this study, we compare family and non-family firms with respect to their exit due to financial reasons. We suggest that the principal dimensions of Transaction Cost Theory (TCT) (i.e., asset specificity, risk aversion, opportunism, and trust) may underlie governance decisions such as family vs. non-family firm and home-based spousal ownership in family firms which can consequently impact firm success/failure. Given the wide variations in the goals and internal structures of family firms, we specifically suggest that home-based family firms with spousal ownership will be less prone to exit than other firms. Indeed, the findings show that family firms are less likely to exit than non-family firms, and the interaction effects of spousal ownership and home-based business further reduce the exit probability of family firms. We conclude by discussing future research implications.

AB - In this study, we compare family and non-family firms with respect to their exit due to financial reasons. We suggest that the principal dimensions of Transaction Cost Theory (TCT) (i.e., asset specificity, risk aversion, opportunism, and trust) may underlie governance decisions such as family vs. non-family firm and home-based spousal ownership in family firms which can consequently impact firm success/failure. Given the wide variations in the goals and internal structures of family firms, we specifically suggest that home-based family firms with spousal ownership will be less prone to exit than other firms. Indeed, the findings show that family firms are less likely to exit than non-family firms, and the interaction effects of spousal ownership and home-based business further reduce the exit probability of family firms. We conclude by discussing future research implications.

KW - Family business

KW - Family firms

KW - Transaction cost theory

KW - Trust

KW - Governance

KW - Business exit

U2 - 10.1007/s11187-018-00131-8

DO - 10.1007/s11187-018-00131-8

M3 - Journal article

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

ER -