The Impact of Small- and Medium-Sized Family Firms on Economic Growth
Drawing on family business studies and the knowledge-based view of economic growth, we develop and test a model of how the prevalence of small- and medium-size enterprises (SMEs) under family control affects economic growth. Specifically, we propose there is an inverted U-shaped relationship between family SMEs' proportional representation and economic growth owing to their relative strengths and limitations vis-à -vis non-family SMEs. Using state-level data from the US between 2004 and 2010, we find support for our hypothesis and the underlying contention that economic growth is maximized when an economy includes a balanced mix of family and non-family SMEs.
Memili, E., Fang, C., Chrisman, J. J., & De Massis, A. (2015). The Impact of Small- and Medium-Sized Family Firms on Economic Growth. Small Business Economics, 45(4), pp. 771-785. Springer Verlag.
The definitive version is available at https://doi.org/10.1007/s11187-015-9670-0
Business and Information Technology
Keywords and Phrases
Economic growth; Family business; Family firms; Knowledge asymmetry; SMEs
International Standard Serial Number (ISSN)
Article - Journal
© 2015 Springer Verlag, All rights reserved.
01 Dec 2015