Abstract

We adopted a justice perspective to investigate the influence of family management on firm productivity. Using a sample of 1,284 privately owned family firms in China, we found that family management, measured as percentage of family members among the middle-management team, was negatively related to firm productivity. Furthermore, we examined individual-, firm-, and regional-level contingencies. We found that the negative relationship between family management and firm productivity was weakened when the professional manager instead of the firm owner was appointed as CEO, when the size of the family firm was smaller, or when family firms were located in regions with higher labor mobility. These findings contribute to family business research and provide practical implications for human resource management in family firms.

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