Impact of informal institutions on the prevalence, strategy, and performance of family firms: A meta-analysis Articles uri icon

publication date

  • August 2022

start page

  • 1153

end page

  • 1177


  • 6


  • 53

International Standard Serial Number (ISSN)

  • 0047-2506

Electronic International Standard Serial Number (EISSN)

  • 1478-6990


  • Family-controlled firms (FCFs)' prevalence, strategies, and performance differ across countries. We explain these differences through the lens of informal institutions, suggesting that different countries have different levels of appreciation for family business. To capture this effect, we introduce the construct of family business legitimacy (FBL) and an associated index (FBLI). We empirically measure FBLI scores for 83 countries spanning both developed and emerging economies. By combining meta-analytic and archival data, we show that FCFs prevail, follow unique strategies, and outperform non-FCFs in countries with high FBLI scores. As a new contingency variable, FBL advances the literature on the informal institutional embeddedness of organizations and family business.


  • Business
  • Economics


  • family firm prevalence; family-controlled firms; firm performance; informal institutions; meta-analysis; strategic decisions