Abstract
Recent surveys have revealed that small family firms struggle to attract non-family employees. Current theoretical perspectives propose that non-family employees join family firms because they perceive a fit with family firms. However, these perspectives are flawed because they do not acknowledge the heterogeneity across family firms. In this paper, we develop a theoretical model that incorporates family communication orientations to explain how family characteristics influence non-family applicants’ attraction to small family firms. We argue that controlling families’ communication orientations are a source of heterogeneity among family firms. We also argue that such heterogeneity across family firms explain differences in staffing practices and applicants’ willingness to join a family firm. We conclude with a discussion of the theoretical implications of our model.
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