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Developed-country plant managers can make capital investments averaging $50,000 without higher authorization, whereas developing-country owners sign off on minor $25 purchase orders; the number of owner brothers and sons directly predicts firm size due to selective family delegation [8, 10].
Executive layers across developing-country firms are overwhelmingly reserved for owner family members, directly reducing middle managers' motivation to cultivate leadership capabilities and reducing owners' incentives to train outside staff.
The count of owner brothers and sons directly predicted firm size and plant expansion; well-managed firms with zero brothers/sons operated only a single plant, while poorly managed firms with multiple male relatives established multiple production plants.