For better or for worse: The influence of non-family blockholders and non-family directors on strategic renewal in family firms
A paper written by Asma Fattoum, Zied Guedri and Célina Smith
Drawing on the impact of a major economy-wide shock, we investigate the influence of non-family blockholders and non-family directors on strategic renewal in family firms. To date, research has only focused on strategic renewal in family firms during stable economic conditions or when it has been induced by firm-specific or industry-specific factors. Using a sample of 203 French listed firms caught up in the 2008 – 2009 financial crisis, we found that (1) non-family blockholders’ relative voting power and (2) non-family directors’ board representation positively affect strategic renewal in family firms’ response to crisis. This study contributes to corporate entrepreneurship research by attending to the strategic renewal in non-munificent environments post-shock; it adds to work on multiple blockholder structures in family firms by highlighting how differential voting rights facilitates strategic renewal; and finally, it extends research on the role of non-family directors by examining their effects in disruptive contexts of economy-wide shocks.
Tuesday, May 7, 2019
12 pm – 1:30 pm
Room St-Hubert (first floor, green section)