Open Access

C. Neffe, C. P. M. Wilderom, F. Lattuch

• Familiness is considered one of the most valuable assets of family firms. But how familiness-related forces at the top management level of family firms may work their way into positive firm performance has not been addressed empirically before. The present field study couples upper-echelon theory with team-leadership theory and examines the effects of the transformational leadership style (TFL) of family- based CEOs in top management team (TMT) processes and on firm performance. Survey measures were gathered from 72 CEOs of German family firms as well as from 245 members of their TMTs. We tested the aggregated firm-level data, including objective firm-performance indicators of the 72 German family firms they led. Support was obtained for a four-path mediation model, in which three distinct familiness-related team forces (TMT cohesion, behavioral integration, and efficacy) serve as mediators between CEO TFL and family-firm performance in a series. With our model we focus on the under- researched area of familiness vis-à-vis family-firm performance. Theoretical and practical implications of the findings are discussed, and suggestions are offered for new avenues of family-firm familiness inquiry.