Bifurcation bias, the preferential treatment of family managers over non-family managers, is widespread in family firms. Drawing on justice and entitlement theories, this paper demonstrates that fairness judgments are socially embedded: cash-based compensation of family managers undermines firm performance, but the effect varies depending on regional traditions, industry competitiveness, and family involvement in management.
This paper provides practical guidance for family firms seeking to balance fairness with family-centred goals.
Authors and affiliations:
● Weiwen Li, Sun Yat-sen University, China
● Xiaotong Li, Qingdao University of Science and Technology, China
● James J. Chrisman, Mississippi State University, USA
● Hanqing “Chevy” Fang, Missouri University of Science and Technology, USA
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