Mo.Fi.R. Working Papers (2019)

Mo.Fi.R. Working Papers (>> Mo.Fi.R. website)

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  • Paper nr. 151
Title:  The Rise and Fall of Family Firms in the Process of Development
Authors:  Maria Rosaria Carillo, Vincenzo Lombardo,Alberto Zazzaro

This paper explores the causes and the consequences of the evolution of family firms in the growth process. The theory suggests that in early stages of development,
valuable family specific human capital stimulated the productivity of family firms and the development process. However, in light of the rise in the importance of managerial talents for firms' productivity in later stages, family firms generated a misallocation of managerial talents, curbing productivity and economic growth. Evidence supports the dual impact of family firms in the development process and the role of socio-cultural characteristics in observed variations in the productivity of family firms.

JEL Codes:   D2, J62, L26, O14, O33, O4, Z1
Keywords: Family firms, economic development and growth, culture and social structure, allocation of talents, industrialization.