New research from Concordia University suggests that in
innovative industries, companies may want to hire outside the bloodline
From the Murdochs to the Hiltons, families have long sought
to keep their businesses in the bloodline. But new research from Concordia
University’s John Molson School of Business shows that’s not necessarily the
best method of management.
The recent study, published in the journal Entrepreneurship
Theory and Practice, shows that if the family business is part of a traditional
industry built on quality and reputation, a family member would make a good
CEO. But if it operates in an industry that values innovation, and the firm has
to stay on the cutting edge, it’s best to look elsewhere for leadership.