Family Values or Crony Capitalism?
Family firms are very prominent in many parts of the world, including in many of the most dynamic emerging markets. They are often thought to be associated with poor corporate and political governance. This article examines the debate about their durability and efficiency, using material drawn from the long experience of continental Europe and sketches out an ideal type of the family, in which there is a historical experience of entrepreneurship, a brand, and a network built around family enterprise. It then tests various common explanations for the prevalence of family firms, including Roman law versus common law traditions, tax incentives, share voting privileges, and inheritance law; and finds that each applies only in a quite particular historical epoch. Finally, the article suggests that family businesses offer advantages that are most apparent at times of shocks and discontinuities, and that they are thus a response to uneven development.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Articles in the same Issue
- Discussion and Commentary
- Comment on "Commercialising University Research: The Oxford Model" (by Tim Cook, Raymond Dwek, and Baruch Blumberg)
- Comment on "Family Values or Crony Capitalism?" (Harold James)
- Comment on "Technological Revolutions and the Evolution of Industrial Structures" (by Giovanni Dosi, Alfonso Gambardella, Marco Grazzi, and Luigi Orsenigo)
- Article
- Commercialising University Research: Threats and Opportunities--The Oxford Model
- Family Values or Crony Capitalism?
- Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies upon the Size and Boundaries of Firms
Articles in the same Issue
- Discussion and Commentary
- Comment on "Commercialising University Research: The Oxford Model" (by Tim Cook, Raymond Dwek, and Baruch Blumberg)
- Comment on "Family Values or Crony Capitalism?" (Harold James)
- Comment on "Technological Revolutions and the Evolution of Industrial Structures" (by Giovanni Dosi, Alfonso Gambardella, Marco Grazzi, and Luigi Orsenigo)
- Article
- Commercialising University Research: Threats and Opportunities--The Oxford Model
- Family Values or Crony Capitalism?
- Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies upon the Size and Boundaries of Firms
