Diversification decisions in family-controlled firms

Luis R. Gomez-Mejia, Marianna Makri, Martin Larraza Kintana

Research output: Contribution to journalArticle

464 Citations (Scopus)

Abstract

This study examines diversification decisions of family firms and suggests that on average family firms diversify less both domestically and internationally than non-family firms. When they do diversify, family firms tend to opt for domestic rather than international diversification, and those that go the latter route prefer to choose regions that are 'culturally close'. Lastly, we find that family firms are more willing to diversify as business risk increases. The hypotheses are tested using a sample of 360 firms, 160 of them being family-controlled and the rest (200) non-family-controlled.

Original languageEnglish (US)
Pages (from-to)223-252
Number of pages30
JournalJournal of Management Studies
Volume47
Issue number2
DOIs
StatePublished - Mar 1 2010

Fingerprint

Industry
Family firms
Diversification
International diversification
Business risk

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

Diversification decisions in family-controlled firms. / Gomez-Mejia, Luis R.; Makri, Marianna; Kintana, Martin Larraza.

In: Journal of Management Studies, Vol. 47, No. 2, 01.03.2010, p. 223-252.

Research output: Contribution to journalArticle

Gomez-Mejia, Luis R. ; Makri, Marianna ; Kintana, Martin Larraza. / Diversification decisions in family-controlled firms. In: Journal of Management Studies. 2010 ; Vol. 47, No. 2. pp. 223-252.
@article{e1411d9a11034d028f6790bb4fc1c243,
title = "Diversification decisions in family-controlled firms",
abstract = "This study examines diversification decisions of family firms and suggests that on average family firms diversify less both domestically and internationally than non-family firms. When they do diversify, family firms tend to opt for domestic rather than international diversification, and those that go the latter route prefer to choose regions that are 'culturally close'. Lastly, we find that family firms are more willing to diversify as business risk increases. The hypotheses are tested using a sample of 360 firms, 160 of them being family-controlled and the rest (200) non-family-controlled.",
author = "Gomez-Mejia, {Luis R.} and Marianna Makri and Kintana, {Martin Larraza}",
year = "2010",
month = "3",
day = "1",
doi = "10.1111/j.1467-6486.2009.00889.x",
language = "English (US)",
volume = "47",
pages = "223--252",
journal = "Journal of Management Studies",
issn = "0022-2380",
publisher = "Wiley-Blackwell",
number = "2",

}

TY - JOUR

T1 - Diversification decisions in family-controlled firms

AU - Gomez-Mejia, Luis R.

AU - Makri, Marianna

AU - Kintana, Martin Larraza

PY - 2010/3/1

Y1 - 2010/3/1

N2 - This study examines diversification decisions of family firms and suggests that on average family firms diversify less both domestically and internationally than non-family firms. When they do diversify, family firms tend to opt for domestic rather than international diversification, and those that go the latter route prefer to choose regions that are 'culturally close'. Lastly, we find that family firms are more willing to diversify as business risk increases. The hypotheses are tested using a sample of 360 firms, 160 of them being family-controlled and the rest (200) non-family-controlled.

AB - This study examines diversification decisions of family firms and suggests that on average family firms diversify less both domestically and internationally than non-family firms. When they do diversify, family firms tend to opt for domestic rather than international diversification, and those that go the latter route prefer to choose regions that are 'culturally close'. Lastly, we find that family firms are more willing to diversify as business risk increases. The hypotheses are tested using a sample of 360 firms, 160 of them being family-controlled and the rest (200) non-family-controlled.

UR - http://www.scopus.com/inward/record.url?scp=74549120166&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=74549120166&partnerID=8YFLogxK

U2 - 10.1111/j.1467-6486.2009.00889.x

DO - 10.1111/j.1467-6486.2009.00889.x

M3 - Article

AN - SCOPUS:74549120166

VL - 47

SP - 223

EP - 252

JO - Journal of Management Studies

JF - Journal of Management Studies

SN - 0022-2380

IS - 2

ER -