Table of Contents

Entrepreneurship, Sustainable Growth and Performance

Entrepreneurship, Sustainable Growth and Performance

Frontiers in European Entrepreneurship Research

Edited by Hans Landström, Hans Crijns, Eddy Laveren and David Smallbone

This book provides an invaluable, state-of-the-art overview of current European research in the field of entrepreneurship. It focuses on four themes, each of which illustrates a key dimension in the overall theme: • entrepreneurs and their role in entrepreneurship • entrepreneurship in family businesses • performance of new ventures and • entrepreneurial processes.

Chapter 7: Financing and Growth Behaviour of Family Firms: Differences between First- and Next-generation-managed Firms

Vincent Molly, Eddy Laveren and Ann Jorissen

Subjects: business and management, entrepreneurship


7. Financing and growth behavior of family firms: differences between first- and next-generation-managed firms Vincent Molly, Eddy Laveren and Ann Jorissen INTRODUCTION The interest in family business studies has increased rapidly over the years, leading to a distinctive legitimate field of study in organizational research. Up until now, there has been considerable interest in exploring family businesses’ financial structure and performance, mainly based on a comparison of family firms considered as a ‘homogeneous group’ with their nonfamilial counterparts. Recently, however, researchers in family business studies are encouraged to reconsider the definition of a family firm, which will no longer start from the idea of an either or scenario but instead from the varying extent and nature of family involvement in a firm (Astrachan et al., 2002; Sharma, 2002; Tsang, 2002). We try to capture this central idea of a ‘heterogeneity approach’ in family business studies by distinguishing between different generations of family firms, which can make future comparisons with non-family businesses more meaningful. The aim in this chapter is to use first-generation family firms as a reference category for describing the behavior in later generations of family firms. Several authors agree on the fact that the success of family firms depends on the effective management of the overlap between the family and the business, as they aim to achieve a combination of both financial and nonfinancial goals (Sharma, 2004). In this respect, one of the biggest challenges of family firms lies in the accommodation of...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information