'Types' of private family firms: An exploratory conceptual and empirical analysis

Paul Westhead*, Carole Howorth

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Family firms that can leverage entrepreneurial experience and knowledge can shape local economic development. Practitioners concerned with fostering enterprise sustainability need to be aware that family firms cite contrasting goals, resource profiles and requirements. Family firms are not a homogeneous entity. The 'targeting' of support to 'types' of family firms could enable practitioners to satisfy their wealth creation and social inclusion objectives. To stimulate increased critical reflection, insights from agency and stewardship theories were drawn upon to illustrate six conceptualized 'types' of private firms based on company ownership and management structures as well as company objectives. Cross-sectional survey evidence was gathered from key informants in family firms in the UK. An agglomerative hierarchical QUICK CLUSTER analysis identified seven empirical 'types' of family firms. Four out of the six conceptualized 'types' were validated by the exploratory empirical taxonomy. Implications for policy-makers and practitioners as well as researchers are discussed.

Original languageEnglish
Pages (from-to)405-431
Number of pages27
JournalEntrepreneurship and Regional Development
Volume19
Issue number5
DOIs
Publication statusPublished - Sept 2007

Keywords

  • Agency and stewardship theory
  • Cluster analysis
  • Enterprise sustainability
  • Family firms
  • Types

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