Labor Productivity in Family Firms: An HR-Centered Perspective
Journal
Academy of Management Proceedings
Type
conference paper
Date Issued
2026-07-17
Author(s)
Arena, Fabio
;
Neckebrouck, Jeroen
;
Zellweger, Thomas Markus
Abstract
The productivity of family firms remains a central yet unresolved issue in management research. While prior studies report both productivity advantages and disadvantages of family firms, we know relatively little about the human resource (HR) mechanisms that condition these outcomes. This study adopts an HR perspective to examine how employment-related contingencies shape labor productivity in family versus nonfamily firms. Using a unique matched panel dataset from a Belgian payroll provider linked to firm-level registry and administrative data, we analyze almost 35,000 firms over multiple years. Using between-effects panel regressions, we find productivity advantages for family firms only under specific HR conditions. Higher wages raise productivity for family and nonfamily firms, but they matter significantly less in family firms. Job security raises productivity equally across firm types, indicating a universal performance benefit rather than a family-firm-specific mechanism. In contrast, family firms benefit disproportionately from managerial professionalization, but exhibit greater productivity declines under employee turnover shocks and extended emoployee tenure. These findings highlight the importance of workforce configuration as a mechanism through which family firm status affects firm productivity.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Academy of Management
Volume
2026
Number
1
Event Title
Academy of Management Annual Meeting 2026
Event Location
Philadelphia
Event Date
July 31 to August 4
Subject(s)
Division(s)
Contact Email Address
fabio.arena@unisg.ch