Publication Type

Journal Article

Version

publishedVersion

Publication Date

12-2020

Abstract

Kin ties are all but ubiquitous in new firms. However, their effects on performance are not straightforward, because they may provide new firms with advantages (enhanced coordination and cooperation) as well as disadvantages (reduced diversity, nepotism concerns, and the possible spillover of personal conflict). As kin ties may have both positive and negative implications for performance, a contingency approach to the performance of new firms is valuable. We develop such an approach by relating different structural configurations of kin ties – whether they are between founders, between founders and employees, and between employees – to the performance of new firms. We test our predictions using data on 4,967 new firms founded in Stockholm between 1998 and 2003. Our theory deepens our understanding of why kin ties have heterogeneous effects on the performance of new firms.

Discipline

Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Journal

Volume

63

Issue

6

First Page

1893

Last Page

1922

ISSN

0001-4273

Identifier

10.5465/amj.2017.1218

Publisher

Academy of Management

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.5465/amj.2017.1218

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