Regional culture: The role of the invisible hand in shaping local family firms’ top management team

Frontiers in Psychology

article

Xiaodong Yu¹  Yuyin Zhang¹  Xirong Cheng²  Huan Li¹  Yujie Chen¹  Weizhong Zhou¹ 

[1] Business School, Central University of Finance and Economics;School of Economics, Beijing Technology and Business University

关键词: Clan culture;    family firms;    family involvement;    Executive compensation;    Socio-emotional wealth;    evolutionary psychology;   

DOI  :  10.3389/fpsyg.2022.781744

学科分类：社会科学、人文和艺术（综合）

来源: Frontiers

【 摘 要 】

Research on family businesses has been focused mainly on the differences between family and nonfamily firms regarding the top management team. This paper explores the differences within family firms under various regional cultures from the perspective of family involvement and family executive compensation. The sample comprised all 625 family firms listed on the Small & Medium Enterprise Board and Growth Enterprise Board of the China Shenzhen Stock Exchange. This study adopted regression analysis to test its hypotheses. Under the influence of strong clan culture, given the high status and profound influence of family in social life, people are accustomed to performing family-based activities. In regions of strong clan culture, family members are more willing to involve in a family business and accept lower economic reward. Particularly, when the financial risk is high, the motivation of maintaining family interests is strong and the effect of regional clan culture is more prominent. Thus, regional culture affects the characteristics of top management team in family firms. This study explains the heterogeneity of family firms’ decision-making from a culture-based perspective and extends existing research on family business from the level of “family firm vs. nonfamily firm” to that of “family firms in different regional cultures”.

【 授权许可】

CC BY