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Family Business Review
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Founding-Family Ownership and Firm Performance

The Role of High-Performance Work Systems

Chiung-Wen Tsao

Tajen University

Shyh-Jer Chen

National Sun Yat-Sen University

Chiou-Shiu Lin

National Sun Yat-Sen University

William Hyde

National Sun Yat-Sen University

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.

Key Words: family-controlled public firms • founding-family ownership • high-performance work system • firm performance • Taiwanese family firms

This version was published on December 1, 2009

Family Business Review, Vol. 22, No. 4, 319-332 (2009)
DOI: 10.1177/0894486509339322


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