Family Capitalism in Argentina: Changes and Continuity over the Course of a Century

LLUCH ANDREA; BARBERO MARIA INES

Evolution of Family Business Continuity and Change in Latin America and Spain

Edward Elgar

Año: 2016; p. 123 - 153

The aim of this chapter is to analyse the distinctive features and long-term evolution of Argentinian family capitalism in order to compare this case to other historical experiences and contribute to the international debate on family businesses in emerging countries. We investigate the relevance and organizational forms of the largest Argentinian family firms and provide evidence on how to explain their longevity, survival and failures from a long-term perspective.This chapter presents, for the first time, a quantitative evaluation of the significance and characteristics of the largest Argentinian family firms between 1923 and 2010, based on the nominal analysis of a series of rankings available for the 100 largest businesses for ten benchmark years (1923, 1937, 1944, 1954/56, 1970, 1980, 1990, 2004 and 2010), and the subsequent individualization of family-owned firms. This data allows us to evaluate the relevance and role of family firms between the 1920s and the 2000s. In order to analyse these processes, we have combined quantitative and qualitative analysis, using information from case histories, institutional histories, biographical dictionaries and other research relating to large Argentinian business families and Argentinian family firms. The following criteria were considered in identifying family businesses: strategic ownership by at least two members of one family, or by one member of each of the participating families in the case of plurifamily businesses; the presence of at least two family members on the board of directors; and the participation of various generations of the family in the ownership and/or management of the business, showing a desire for continuity over time (for more information on these criteria, see the Introduction to this volume). We have also included businesses managed by the founder that have remained under the control of the original family.We argue that in the period under study, large-scale Argentinian capitalism has been family-based, and has retained some enduring features over the years, in particular the notable presence of diversified business groups (DBGs). We also note that sales, mergers and failures have had a strong impact on the dynamic reconfiguration of Argentinian family capitalism in the long term. This innovative longitudinal approach therefore allows us to identify transformations and discontinuities in the environment and the players and sectors that have made up the family business elite at various moments in the period under study.