The Transaction Cost Economics Theory of the Family Firm: Family–Based Human Asset Specificity and the Bifurcation Bias

By Alain Verbeke, Liena Kano. 2012

362 citations recorded by the source corpus.

Subfields: Accounting, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/1a7d619a1632c92932791cbe6335ab872634ae1e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Organizational Behavior and Human Resource Management

Citations in the corpus

Family firm internationalization: heritage assets and the impact of bifurcation bias (2018, positive): “, converting to Chandlerian hierarchies), or ceasing to exist altogether (Verbeke and Kano, 2012).”
International corporate governance: A review and opportunities for future research (2019, neutral): “This is because family ownership often entails a preference for family members as managers who tend to be more risk averse and might lack an understanding of foreign markets (Aguilera, Florackis, & Kim, 2016; Verbeke & Kano, 2012).”
Learning bad habits across generations: How negative imprints affect human resource management in the family firm (2018, background): “However, as the family firm grows it often requires the establishment of formal HRM practices that conflict with family norms that place emphasis on belonging and loyalty rather than merit (Lansberg, 1983; Verbeke & Kano, 2012).”
Entrepreneurial orientation and innovation in family SMEs: Unveiling the (actual) impact of the Board of Directors (2018, background): “knowledge, skills, and experience is likely to be lower in BoDs characterized by high family involvement, since family members generally have a similar educational and work background (Bammens et al., 2011; Verbeke and Kano, 2012).”
The emergence of bifurcation bias from unbalanced families: Examining HR practices in the family firm using circumplex theory (2018, background): “Extant research investigates bifurcation bias through the lens of well-established organizational theories such as transaction cost economics and agency theory (e.g., Chua, Chrisman, & Bergiel, 2009; Verbeke & Kano, 2012).”
Strategic agility and international joint ventures: The willingness-ability paradox of family firms (2020, background): “Therefore, there is a high risk of bounded rationality (Verbeke and Kano, 2012), given that less skilled directors will be responsible for achieving economic goals and their pivotal goal is to preserve family influence and control, even at the expense of financial performance (Gómez-Mejía et al.”
Why is Family Firms’ Internationalization Unique? A Meta–Analysis (2017, background): “Some of these challenges are unique to family firms due to the often constrained managerial capabilities of family members and/or the firms’ family-based human asset specificity (G omez-Mej ıa et al., 2010; Sirmon & Hitt, 2003; Verbeke & Kano, 2012).”
Governance Mechanisms and Family Firms (2018, neutral): “Since family firms are prone to bifurcation bias, the unequal treatment of family and nonfamily members (Verbeke & Kano, 2012), the results of this study also raise the question of whether the embeddedness of nonfamily employees in friendship networks with family employees reduce perceptions of…”
Family Firm Heterogeneity: A Definition, Common Themes, Scholarly Progress, and Directions Forward (2021, background): “For example, negative justice perceptions often limit nonfamily employee engagement, thereby restricting knowledge flow (Verbeke & Kano, 2012).”
Stewardship Theory: Realism, Relevance, and Family Firm Governance (2019, background): “Consistent with the work of Verbeke and Kano (2012), this finding suggests that employees’ perceptions of excessive control depend on the types and amounts of control they experience relative to that imposed on other organizational members, that is, bifurcation bias, is the primary problem in…”
Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field (2017, background): “…that could be taken into account when examining financing decisions in family firms are, for example, the availability of family-based human assets (Verbeke & Kano, 2012), the ability to professionalize the firm (Chua, Chrisman, & Sharma, 2003), or the presence of venture capital, which can…”
Family firms in the global economy: Toward a deeper understanding of internationalization determinants, processes, and outcomes (2018, background): “…levels of regional focus (e.g., Banalieva and Eddleston, 2011), or integrating agency and stewardship theories into transaction cost economics (e.g., Gedajlovic and Carney, 2010; Verbeke and Kano, 2010, 2012; Majocchi et al., in press) to define family firms as a specific governance institution.”
Implications of Family Business Employment for Employees’ Innovative Work Involvement (2015, background): “…to the scope of care, this can vary from inclusive care aimed at the workforce as a whole to selective or exclusive care where family employees are treated with greater care and concern than nonfamily employees (Colombo, De Massis, Piva, Rossi-Lamastra, & Wright, 2013; Verbeke & Kano, 2012).”