Abstract We draw from socioemotional wealth and social identity research to develop a theory on reputational differences among family non‐family firms. propose that members identify more strongly with their firm than do either or firm. Heightened identification motivates pursue favourable reputation because it allows them feel good about themselves, thus contributing wealth. hypothesize when the family's name is part of firm's name, higher are particularly motivated for have better...

This article introduces a formula to assess the total value of privately held family businesses from owner's perspective. It is argued that business not only composed its financial worth and private benefits, as usually assumed by traditional theory, but emotional components also have an impact on valuation. In particular, it returns (ER) positively affect value, whereas costs (EC) negatively value. Even though every stakeholder faces returns, solely owner who ultimately decides consequently...

Prior research has analyzed R&D spending in family and founder firms. Yet little is known about the economic technological importance of innovations these types Using patent citation data, we show that founder-managed firms, which argue favor an entrepreneurial orientation, receive more citations when compared with other even controlling for spending. By contrast, family-managed many which, argue, pursue socioemotional wealth family, fewer again, Patent have been shown literature to...

In contrast to the literature that portrays nepotism as generally problematic, we develop a conceptual model explain why some family firms benefit from while others do not. We distinguish two types of based on how nepots are chosen. elaborate differences between entitlement and reciprocal nepotism. propose (vs. entitlement) is associated with three conditions indicate generalized restricted) social exchange relationships members. also suggest exchanges valuable because they facilitate tacit...

Using a sample of 714 private family influenced businesses in Germany, we investigate the relationship goal alignment between owners and managers existence board directors. Agency theory stewardship serve as theoretical bases for our study. We find that firms with relatively high levels are less likely to have Our results provide support substitution hypothesis formal by social control mechanisms. Furthermore, findings show without low members top management team. This circumstance might...

The relationships between family firms and their institutional contexts are critical to firm legitimacy sustainability. However, we still know little about how these influence behavior. We draw on the literature—institutional logics in particular—to investigate behavior of different types wineries within Okanagan region Western Canada. analyze family, business, community guide behavior, combinations lead take action that modifies field support own

We draw on the institutional logics perspective to understand different approaches that family firms can use manage process of succession. Based analysis 21 case studies in Germany, we identify four ways managing potentially conflicting and commercial are associated with succession processes. Our findings contribute firm literature by improving our knowledge heterogeneity explaining logic influence behavior. Moreover, theory showing importance filtering mechanisms for organizations must...

Family firms take different strategic actions because of their desire to grow and preserve socioemotional wealth (SEW), but pursuing SEW also generates what we call resources that deliver advantages in certain contexts. We develop test this idea with respect corporate social responsibility (CSR). theorize such as reputation, strong stakeholder relationships, long-term orientation help family better leverage symbolic CSR enhance short-term firm performance substantive performance. Regression...

This article examines the long-run stock market performance of German and Spanish initial public offerings (IPOs) between 1990 2000. We distinguish family-and nonfamily-owned business IPOs by using power subscale F-PEC. Buy-and-hold-abnormal returns (BHAR) are calculated in order to determine abnormal returns. Our results show that three years after going public, investors, on average, realized an return − 32.8% for 36.7% IPOs. In both countries, nonfamily perform insignificantly better....

Abstract Research Summary Imprinting theory predicts that organizations are imprinted with multiple intersecting imprints persist. Evidence suggests, however, sometimes reprioritized or modified, implying they can be strategically managed. We draw upon rhetorical history research and an in‐depth historical case study of New Zealand's Gallagher Group to describe how one firm managed its imprints. Our inductive theorizing links historically strategic guideposts decision‐making via two...

Emerging evidence suggests that pay dispersion among non-CEO top management team (TMT) members harms firm performance, which raises questions about why firms’ owners tolerate or even support it. Prior research shows the key distinction between founder and family is in addition to performance growth goals, pursue socioemotional goals. On basis of this distinction, we develop test theory linking founders’ families’ ownership TMT dispersion. Consistent with our theory, a Bayesian panel analysis...

Although large owners monitor managers effectively, they differ in important ways. Whereas founder focus on firm performance, family also pursue socioemotional goals. We leverage this distinction to theorize that offer hired CEOs more incentive pay—to attract nonfamily CEOs, signal good governance, and achieve better performance. Without wealth distractions, do not need high incentives overusing them is counterproductive. Bayesian regressions using a panel of 335 S&P 500 firms support...

Entrepreneurship declines precipitously across generations in family firms, except families that convey an entrepreneurial legacy to successors. However, because is imprinted on all children, its impact should extend beyond Inductive analysis of data from 26 nonsuccessor adult children 13 multigenerational German wineries reveals whether and where—at the firm, within family's portfolio or elsewhere—such pursue entrepreneurship depends, addition having legacy, cohesiveness flexibility....

The Adulthood of Family Business Research Through Inbound and Outbound TheorizingSince the early 1980s, rapid growth family business research has led to establishment academic field business.Concurrently, nature conducted in evolved through a number developmental stages.Early studies, when was young its primary stage, tended highlight differences actions, behaviors, performance non-family businesses.This effort justified necessary, part, order establish businesses as unique organizational...

Drawing on regulatory focus theory, we advance a microtheory for Naldi, Cennamo, Corbetta, and Gómez–Mejía's findings suggesting that family ties as well the career aspirations derive from them trigger relatively higher prevention lower promotion goal orientations of when compared with nonfamily chief executive officers (CEOs). Our conceptualization offers an alternative theory why firms CEOs outperform those in contexts such industrial districts where conservation strategies are more...