Yes / We explore the process of professionalization pre- and post- buyout (MBO)
or buyin (MBI) of former private family firms using longitudinal evidence
from six UK family firms undergoing an MBO/I in 1998. Professionalization
behaviour was monitored up to 2014. Previous studies have
conceptualized professionalization as a threshold to be attained. We
demonstrate that professionalization is a complex process occurring in
waves, triggered by changes in firm ownership and management. Waves
of professionalization converge during the MBO/I process. Buyouts provide
a funnelling mechanism enabling diverse control systems to be
standardized. Post-MBO/I, divergence in the professionalization process
reoccurs contingent on firm-specific contexts. Professionalization focuses
on operations when stewardship relationships predominate, but on agency
control mechanisms when there is increased potential for agency costs.
Buyout organizational form is an important transitory phase facilitating the
professionalization process. Professionalization is not a once for all
development stage. / The Enterprise Research Centre is an independent research centre which focusses on SME growth and productivity. ERC is a partnership between Warwick Business School, Aston Business School, Imperial College Business School, Strathclyde Business School and Birmingham Business School. The Centre is funded by the Economic and Social Research Council (ESRC); the Department for Business, Innovation & Skills (BIS); Innovate UK; and, through the British Bankers Association (BBA), by the Royal Bank of Scotland PLC; HSBC Bank PLC; Barclays Bank PLC and Lloyds Bank PLC. The support of the funders is acknowledged. The views expressed in this report are those of the authors and do not necessarily represent those of the funders.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/17156 |
| Date | 14 June 2019 |
| Creators | Howorth, Carole, Wright, M., Westhead, P., Allcock, D. |
| Publisher | Enterprise Research Centre |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Report, Published version |
| Rights | © 2015 Enterprise Research Centre. Reproduced in accordance with the publisher's self-archiving policy. |
| Relation | https://www.enterpriseresearch.ac.uk/publications/waves-of-professionalization-before-during-and-after-management-buyouts-and-buy-ins-of-private-family-firms-research-paper-no-37/ |
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