The authors would like to thank Family Business Centre of the University of the Basque Country for financial support (DFB/BFA and European Social Fund). This research has received financial support from the UPV/EHU (Project UPV/EHU 12/22).
Impact of Outsiders on Firm Performance over Different Generations of Family-Owned SMEs
Article first published online: 24 APR 2014
© 2014 International Council for Small Business
Journal of Small Business Management
How to Cite
Maseda, A., Iturralde, T. and Arosa, B. (2014), Impact of Outsiders on Firm Performance over Different Generations of Family-Owned SMEs. Journal of Small Business Management. doi: 10.1111/jsbm.12119
The author would like to thank two anonymous referees and editors for their helpful comments and suggestions. Any remaining errors are our own.
- Article first published online: 24 APR 2014
- Family Business Centre of the University of the Basque Country. Grant Number: DFB/BFA and European Social Fund
- UPV/EHU. Grant Number: UPV/EHU 12/22
From the perspective of agency, resource-based view, and resource-dependence theories, we explore the impact of the presence of outside directors on firm performance in family small and medium-sized enterprise (SMEs). Using survey data from 369 Spanish family SMEs, our findings show an inverted U-shaped relationship between the proportion of outsiders on the boards of first- and second-generation family firms and firm performance. The results show that a balanced presence of outside directors contributes to value creation in family SMEs and confirm that the composition and the roles of the board of directors differ from generation to generation in family firms.