This paper was motivated by the increasing interest in the corporate governance debate on how effective structure and processes may influence entre- preneurial transitions. Along the entrepreneurial process, little research to date has investigated the exit in the context of entrepreneurial family firms. Previous liter- ature has considered the exit mainly as a failure for entrepreneurial families, but when uncertainties arise this choice may enable ownership transitions, thus facili- tating survival and long term strategies. Among the exit options, a private equity buyout may balance the family’s wealth protection and the firm’s future growth. However, which family specific characteristics and strategic needs may affect the exit option still remains a neglected topic. Drawing on corporate governance lit- erature and recent research addressing entrepreneurship in family firms, this paper investigates, by a single case study, the bridging role of private equity buyout for going through entrepreneurial transitions. Findings suggest that a private equity buyout is a governance mechanism that may sustain an entrepreneurial transition by realigning family interests and goals. It may also allow the family commitment for improving organizational capabilities required by an entrepreneurial transition.

Corporate governance effectiveness along the entrepreneurial process of a family firm: the role of private equity / Di Toma, Paolo; Montanari, Stefano. - In: THE JOURNAL OF MANAGEMENT AND GOVERNANCE. - ISSN 1385-3457. - 21:4(2017), pp. 1023-1052. [10.1007/s10997-016-9373-1]

Corporate governance effectiveness along the entrepreneurial process of a family firm: the role of private equity

DI TOMA, Paolo;MONTANARI, Stefano
2017

Abstract

This paper was motivated by the increasing interest in the corporate governance debate on how effective structure and processes may influence entre- preneurial transitions. Along the entrepreneurial process, little research to date has investigated the exit in the context of entrepreneurial family firms. Previous liter- ature has considered the exit mainly as a failure for entrepreneurial families, but when uncertainties arise this choice may enable ownership transitions, thus facili- tating survival and long term strategies. Among the exit options, a private equity buyout may balance the family’s wealth protection and the firm’s future growth. However, which family specific characteristics and strategic needs may affect the exit option still remains a neglected topic. Drawing on corporate governance lit- erature and recent research addressing entrepreneurship in family firms, this paper investigates, by a single case study, the bridging role of private equity buyout for going through entrepreneurial transitions. Findings suggest that a private equity buyout is a governance mechanism that may sustain an entrepreneurial transition by realigning family interests and goals. It may also allow the family commitment for improving organizational capabilities required by an entrepreneurial transition.
17-dic-2016
21
4
1023
1052
Corporate governance effectiveness along the entrepreneurial process of a family firm: the role of private equity / Di Toma, Paolo; Montanari, Stefano. - In: THE JOURNAL OF MANAGEMENT AND GOVERNANCE. - ISSN 1385-3457. - 21:4(2017), pp. 1023-1052. [10.1007/s10997-016-9373-1]
Di Toma, Paolo; Montanari, Stefano
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11380/1129523
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