Exploring nonlinear effects of family power on the performance of Italian wine businesses

Abstract

Purpose

This work seeks to investigate the performance of wine businesses operating in the Campania region in the South of Italy and aims to verify the family power effect on company performance.

Design/methodology/approach

The study was conducted on a sample of 114 firms that operate in the quality wines industry. Using a panel data regression model with time fixed effects, the authors analyzed the firm performance during the interval 2007‐2010 to detect the effect of family power on the firm performance. Family power was measured through the degree of family involvement in ownership and on the board. Performance was measured in terms of revenue and profitability.

Findings

The research highlights a U‐shaped relationship between family power and revenue and an inverted U‐shaped relationship between family power and profitability.

Originality/value

The findings show an empirical framework which could stimulate the academic debate on family effect in order to draw implications for marketing management and policy makers in the wine business and to provide suggestions for further research.

Citation

Gallucci, C. and D'Amato, A. (2013), "Exploring nonlinear effects of family power on the performance of Italian wine businesses", International Journal of Wine Business Research, Vol. 25 No. 3, pp. 185-202. https://doi.org/10.1108/IJWBR-2012-0017