Abstract
In this paper the authors study the relationship between the use of external advice and the size of a Spanish family business, focusing especially on the advice on legal matters and human resources, due to the importance of these particular issues for family firms. To fulfill this objective, an in-depth review of the literature has been performed, as well as an empirical study. The results show that a family nature of business has a positive impact in the use of human resources management external advice. Nevertheless, for legal advice no relationship can be found. Finally, in line with the literature and the results of the analysis, no positive relationship has been found between family business size and the use of external advice, in comparison to the results for companies in general. The scarcity of published work about the issue and the results obtained, especially those related to the use of legal advice for family business managers, make this paper useful for researchers and businesses managers.
Highlights
Firms are the predominant form of business in many countries, and they contribute extensively to worldwide economic production, job and wealth creation (Astrachan et al 2003)
This paper focuses on the specific analysis of legal and human resources (HR) advice in the family firms, because they are the two main worries that affect this type of company
It makes a supplementary examination dividing the sample between family and nonfamily firms
Summary
Firms are the predominant form of business in many countries, and they contribute extensively to worldwide economic production, job and wealth creation (Astrachan et al 2003). There is an extensive amount of analysis in the literature focusing on problems caused by generational changeovers, such as a lack of professionalism and very poorly defined organizational structures (e.g., Gallo, García-Pont 1996; Graves, Thomas 2004). In this sense, to know and understand the major issues regarding family. In broad terms, a smaller size and more limitations than non-family firms (Daily, Dollinger 1992) In most cases, they cannot afford to recruit professional managers. Over the last thirty years, external advice services have increased substantially in most developed economies and more recently in developing countries
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