Abstract
The objective of this paper is to investigate the antecedents of formal HRM practices in private family firms. More specifically, we look at family-centered noneconomic (FCNE) goals and family governance practices (FGP) through the lens of the behavioural theory of the firm to understand its effect on adopting formal HRM practices. Using regression models on a sample of 293 Belgian family SMEs, our results support the hypothesis that pursuit of FCNE goals is associated with less formalized HRM practices. Additionally, consistent with our second hypothesis, the simultaneous use of FGP while pursuing FCNE goals attenuates this negative effect. One implication of the research is that FGP can be beneficial not only to family but also nonfamily members of the firm.
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