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Review of Managerial Science

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01.10.2014 | Original Paper

A finance professional who understands the family: family firms’ specific requirements for non-family chief financial officers

verfasst von: Martin R. W. Hiebl

Erschienen in: Review of Managerial Science | Ausgabe 4/2014

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Abstract

Non-family chief financial officers (CFOs) are often the first non-family members recruited into a family firm’s top management team. Based on the extant literature and with reference to the resource-based view of the firm, family firm peculiarities can also be expected to affect the requirements family firms look for when hiring non-family CFOs. To analyze these requirements, this paper draws on interviews with family firm owners, chief executive officers and non-family CFOs. Family firms’ specific requirements for CFOs are analyzed along four dimensions, namely education, professional know-how, career path and social/interpersonal skills, and 11 propositions are then developed. The presented findings suggest that family firm owners seek to integrate non-family CFOs with professional non-family firm experience in order to enrich the family firm’s resource pool. In turn, non-family CFOs are required to adapt to the specific governance characteristics prevalent in family firms.

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The term “C-suite” refers to the corporate executive suite and comprises all chief officers such as the CEO or CFO. The term “C-suite” is often used interchangeably with the term “top management team” (Nath and Mahajan 2011).

Keywords that described each of these three literature streams were formulated and various electronic databases searched. These databases were Scopus, Emerald, SpringerLink, EBSCO Business Source Premier, ScienceDirect and Google Scholar. I searched these databases for various combinations of the following keywords: “Chief Financial Officer*”, “CFO*”, “qualification*”, “requirement*”, “skill*”, “education*”, “family business*”, “family firm*”, “family controlled”, “family owned”, “non-family manage*”, “Chief Executive Officer*”, “CEO*”, “top management” and “C-suite”. Note that the asterisks allowed for different suffixes such as “non-family management” as well as “non-family manager”.

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Titel: A finance professional who understands the family: family firms’ specific requirements for non-family chief financial officers
verfasst von: Martin R. W. Hiebl
Publikationsdatum: 01.10.2014
Verlag: Springer Berlin Heidelberg
Erschienen in: Review of Managerial Science / Ausgabe 4/2014
Print ISSN: 1863-6683
Elektronische ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-013-0112-6

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