Managerial long-term responsibility in family-controlled firms

english

2013

volume 8, issue 2

Univerza na Primorskem, Fakulteta za management
(Obvezni izvod spletne publikacije)

Evidence suggests that long-term orientation (lto) as a dominant strategic logic contributes to the sustainable performance of family-controlled firms (fcfs). Combining a review of the literature on lto with stewardship theory and upper echelons theory reasoning, this article presents a typology of managerial responsibility and introduces the concept of long-term responsibility as a managerial characteristic constituting a major driving force behind creating lto. The antecedents of long-term responsibility under family firm-specific conditions (stemming from the family system, the governance system, and family-firm managers personal characteristics) are also identified and presented in an integrated model. The paper contributes to a more comprehensive understanding of intertemporal choice in fcfs and explains why they tend to be more long-term oriented than other types of firms.

12.06.2015