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
Citation
ERTUG, Gokhan; KOTHA, Reddi; and HEDSTROM, Peter.
Kin ties and the performance of new firms: A structural approach. (2020). Academy of Management Journal. 63, (6), 1893-1922.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6497
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/amj.2017.1218