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Formal HRM in family SMEs: the role of family-centered goals and family governance

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Abstract

This paper aims to investigate the antecedents of formal human resource management (HRM) in private family firms. Specifically, we adopt a socio-emotional wealth perspective to predict the relationship between family-centered noneconomic (FCNE) goals and formal HRM practices. In addition, we rely on the extension of the behavioral theory, i.e., the attention-based view of the firm, to understand the moderating effect of family governance practices (FGPs) on the relation between FCNE goals and formal HRM practices. Based on analyses of a sample of 293 Belgian privately-held family small and medium enterprises, we find that the pursuit of FCNE goals is associated with less formal HRM practices. In addition, simultaneously engaging in FGPs while pursuing FCNE goals reverses this negative effect.

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Notes

  1. This list of email addresses was obtained via a Belgian business magazine and comprised the personal email addresses of the CEOs of Belgian nonfinancial firms with at least 10 employees (in order to exclude micro-organizations) and a maximum of 250 employees.

  2. We classified firms that responded before a reminder was sent as ‘early respondents’ and the other group as ‘late respondents’. The early respondents and late respondents do not differ significantly in terms of key firm characteristics that might covary with the variables of interest: firm age (t = − 0.41, p = 0.68; Levene’s statistic = 0.17, p = 0.68); firm performance (t = 0.91, p = 0.36; Levene’s statistic = 2.15, p = 0.14); firm size (t = 1.78, p = 0.08; Levene’s statistic = 1.76, p = 0.19); and industry (t = − 0.55, p = 0.58; Levene’s statistic = 2.50, p = 0.11).

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Acknowledgements

The authors want to acknowledge Dr. Vincent Molly, Dr. Johan Lambrecht, and Dr. Alain Praet for the joined efforts in data collection.

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  1. Research Center for Entrepreneurship and Family Firms, Hasselt University, Gebouw D, 35990, Agoralaan, Diepenbeek, Belgium

    Anneleen Michiels

  2. Faculty of Economics and Business, Department of Work and Organisation Studies, KU Leuven, Warmoesberg 26, 1000, Brussels, Belgium

    Diane Arijs

  3. Department of Management and Humanities, EDHEC Business School, France, 24 Avenue Gustave Delory, 59057, Roubaix Cedex 1, France

    Lorraine Uhlaner

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Michiels, A., Arijs, D. & Uhlaner, L. Formal HRM in family SMEs: the role of family-centered goals and family governance. Rev Manag Sci 16, 2553–2576 (2022). https://doi.org/10.1007/s11846-021-00509-1

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