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Family Business Review
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Article

Founding-Family Ownership and Firm Performance: The Role of High-Performance Work Systems

Chiung-Wen Tsao*, Shyh-Jer Chen, Chiou-Shiu Lin, and William Hyde

Tajen University

* To whom correspondence should be addressed. E-mail: cwtsao{at}tajen.edu.tw.


  Abstract
The controversial findings of both high and low performance for family-controlled public firms offer a unique context in which to study the moderating role of high-performance work systems (HPWS) on founding-family ownership effects. In a sample of Taiwan-based public firms, founding-family ownership was found not to be associated with firm performance. However, when the level of HPWS facing family ownership was accounted for, the results showed that the relationship between founding-family ownership and firm performance is significantly negative for companies with lower levels of HPWS but is significantly positive for companies with higher levels of HPWS.

First published on July 24, 2009, doi:10.1177/0894486509339322

Family Business Review 2009;22:319.

A more recent version of this article appeared on December 1, 2009

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