Company metamorphosis: professionalization waves, family firms and management buyouts
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Published version
Author(s)
Howorth, C
Wright, M
Westhead, P
Allcock, D
Type
Journal Article
Abstract
We explore the process of professionalization pre- and post-buyout (MBO) or buyin (MBI) of former private family firms using longitudinal evidence from six UK family firms undergoing an MBO/I in 1998. Professionalization behaviour was monitored up to 2014. Previous studies have conceptualized professionalization as a threshold to be attained. We demonstrate that professionalization is a complex process occurring in waves, triggered by changes in firm ownership and management. Waves of professionalization converge during the MBO/I process. Buyouts provide a funnelling mechanism enabling diverse control systems to be standardized. Post-MBO/I, divergence in the professionalization process reoccurs contingent on firm-specific contexts. Professionalization focuses on operations when stewardship relationships predominate, but on agency control mechanisms when there is increased potential for agency costs. Buyout organizational form is an important transitory phase facilitating the professionalization process. Professionalization is not a once-for-all development stage.
Date Issued
2016-10-01
Date Acceptance
2016-06-07
Citation
Small Business Economics, 2016, 47 (3), pp.803-817
ISSN
1573-0913
Publisher
Springer Verlag (Germany)
Start Page
803
End Page
817
Journal / Book Title
Small Business Economics
Volume
47
Issue
3
Copyright Statement
© The Author(s) 2016. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Identifier
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000384440900014&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=1ba7043ffcc86c417c072aa74d649202
Subjects
Social Sciences
Business
Economics
Management
Business & Economics
Family firms
Professionalization
Management buyout
Stewardship
Agency
BUY-OUTS
PERFORMANCE
BUSINESS
AGENCY
PERSPECTIVE
SUCCESSION
IMPACT
Publication Status
Published