| Item Type |
Journal paper
|
| Abstract |
We posit that family firms often face a dilemma in their strategic decision making: whether to maintain current socioemotional wealth (SEW) or pursue prospective financial wealth. Applying such a mixed gamble perspective to acquisitions, family owners assess potential acquisitions with regard to their impact on both wealth dimensions. In line with this reasoning, we find that family control implies a general reluctance to acquire, and, when an acquisition happens, a preference for related targets. Because financial and socioemotional viewpoints lead to largely incompatible predictions about the occurrence and relatedness of acquisitions, family firm owners use their firm's vulnerability as a signal. Increased vulnerability leads to a heightened propensity to prioritize financial over SEW problem framing, which is reflected in the acquisition of unrelated targets. Empirical results are supportive of these predictions. |
| Authors |
Gomez-Mejia, Luis; Patel, Pankaj & Zellweger, Thomas |
| Journal or Publication Title |
Journal of Management |
| Language |
English |
| Subjects |
business studies |
| HSG Classification |
contribution to scientific community |
| Refereed |
Yes |
| Date |
2018 |
| Publisher |
Sage Publ. |
| Place of Publication |
Thousand Oaks, Calif. |
| Volume |
44 |
| Number |
4 |
| Page Range |
1369-1397 |
| Number of Pages |
50 |
| ISSN |
0149-2063 |
| ISSN-Digital |
1557-1211 |
| Publisher DOI |
https://doi.org/10.1177/0149206315614375 |
| Depositing User |
Prof. Dr. Thomas Zellweger
|
| Date Deposited |
30 Sep 2015 14:12 |
| Last Modified |
20 Jul 2022 17:25 |
| URI: |
https://www.alexandria.unisg.ch/publications/244245 |
In the horns of the dilemma: socioemotional wealth, financial wealth and acquisitions in family firms
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