LSE Business Review blog:
Second-generation family CEOs: are they up to the task?
18 January 2018
Research shows the first causal evidence that dynastic family firms have worse management practices, writes Daniela Scur
We push the literature forward in two main ways: first, we show the first causal evidence that dynastic family CEO successions lead to worse management. Second, we go beyond the usual suggestions of improving information and skills, and suggest that the specific labour context that family firms act in is important. We propose that the implicit employment commitments between family managers and their workers should factor into both how management upgrading projects are presented to prospective firm managers as well as into the expected take-up and long-term adherence of such improvements. This is a key consideration as many organisations push forward in enacting management upgrading projects around the world.
Related publications
‘All in the family? CEO choice and firm organization’, Renata Lemos and Daniela Scur, mimeo, January 2018
http://www.danielascur.com/wp-content/uploads/2018/01/danielascurjmp_allinthefamily.pdf