Now showing 1 - 10 of 20
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Relationship Conflict, Family Name Congruence, and Socioemotional Wealth in Family Firms

2019 , Rousseau, Mary Beth , Kellermanns, Franz W. , Zellweger, Thomas Markus , Beck, Tammy

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Family Control and Family Firm Valuation by Family CEOs : The Importance of Intentions for Transgenerational Control

2012-05 , Zellweger, Thomas , Kellermanns, Franz W. , Chrisman, James J. , Chua, Jess H.

Family firms are thought to pursue non-financial goals that provide socioemotional wealth but socioemotional wealth is feasible only with family control of the firm. Using prospect theory, we hypothesize that socioemotional wealth increases with the extent of current control, duration of control, and intentions for transgenerational control thus adding to the price at which owners would be willing to sell their firms to non-family buyers. Findings from two countries show that current control has no impact and duration of control has a mixed impact. However, intention for transgenerational control has a consistent positive impact on the perceived acceptable selling price

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Exploring the Concept of Familiness : Introducing Family Firm Identity

2010-03 , Zellweger, Thomas , Eddleston, Kimberley H. , Kellermanns, Franz W.

Our paper contributes to the overarching question: "How does the family contribute to firm success?" We add to the nomological net of the familiness construct, by reaching beyond the components of involvement and the essence approach and by introducing organizational identity as a third dimension of familiness. As such, we investigate which families are most likely to build familiness. Specifically, the organizational identity dimension of familiness reflects how the family defines and views the firm, which can facilitate performance advantages through leveraging familiness both internally and externally. Lastly, we discuss how the combinations of components of involvement, essence and identity dimensions of familiness interact and explain why and how some families are a key resource to their firms while others add little value to their organizations.

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How Socioemotional Wealth biases Survival Risk Perceptions among Family Firm Owners

2011-08-15 , Zellweger, Thomas , Dehlen, Tobias , Kellermanns, Franz W.

Applying a behavioral perspective, we investigate how threats to firm survival, measured through reduced performance and heightened leverage, impact risk perceptions among family firm owners. More specifically, we test whether socioemotional biases induced by duration of family ownership and transgenerational sustainability intentions, alter the negative relationship between low profitability and high leverage on the acceptable sale price of the firm. In extension to existing literature on family owners' risk perceptions and organizational risk taking, our study finds increased risk sensitivity for family owners with long ownership traditions, whereas transgenerational sustainability intentions do not bias the negative relationship of low profitability and high leverage on acceptable sale price

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Exploring the entrepreneurial Behavior of Family Firms: Does the Stewardship Perspective explain Differences?

2012-03-01 , Eddleston, Kimberley H. , Kellermanns, Franz W. , Zellweger, Thomas

Drawing from stewardship theory we investigate corporate entrepreneurship in family firms. We argue that stewardship culture determinants - comprehensive strategic decision-making, participative governance, long-term orientation and human capital -differentiate the most entrepreneurial family firms. Based on a study of 179 family firms, we show that comprehensive strategic decision-making and long-term orientation contribute to corporate entrepreneurship. Additionally, family-to-firm unity enhances the positive effects participative governance and long-term orientation have on corporate entrepreneurship. While we found that family-to-firm unity can compensate for low human capital, unexpectedly, we also found that family-to-firm unity can dampen the positive relationship between human capital and corporate entrepreneurship

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Building a Family Firm Image: : How Family Firms capitalize on their Family Ties

2012-12 , Zellweger, Thomas , Kellermanns, Franz W. , Eddleston, Kimberley H. , Memili, Esra

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Socioemotional Wealth and Family Firm Performance: Economic Gains from Pursuing Noneconomic Goals

2013-08-09 , Madison, Kristen , Kellermanns, Franz W. , Zellweger, Thomas

Socioemotional wealth recently emerged as an important distinguishing characteristic between family and nonfamily firms. It is used in extant literature as a theoretical framework to rationalize the behavior of protecting family interests at the expense of financial success. We present socioemotional wealth differently: as a measureable construct, conceptualized through a stewardship theory lens, with empirical support for its positive relationship with family firm financial performance. Results also show hostile environments attenuate the SEW–performance relationship, indicating that firms with high socioemotional wealth are unable to make the necessary strategic adjustments needed to enhance performance in difficult environments.

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Extending the Socioemotional Wealth Perspective: A Look at the dark Side

2012-11 , Kellermanns, Franz W. , Eddleston, Kimberley H. , Zellweger, Thomas

We extend the socioemotional wealth (SEW) perspective by arguing that SEW can be negatively associated with proactive stakeholder engagement (PSE). We further suggest that the SEW dimensions can be associated with positive or negative valence. Lastly, we propose that negatively valenced SEW dimensions lead to family centric behavior, which negatively affects PSE. This multifaceted conceptualization of SEW allows us to explain how family firms can partake in harmful stakeholder behaviors despite having seemingly strong SEW. Our paper suggests that SEW can be either an affective endowment or burden for family firms and their constituents.

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The Critical Path to Family Firm Success through Entrepreneurial Risk Taking and Image

2010-12 , Memili, Esra , Eddleston, Kimberley H. , Zellweger, Thomas , Kellermanns, Franz W. , Barnett, Tim

Drawing from organizational identity theory, we explore how family ownership and family expectations influence family firm image and entrepreneurial risk taking, and ultimately firm performance. We find support for a fully-mediated model, utilizing a sample of 163 Swiss family firms. Family ownership was shown to positively influence the development of a family firm image. High family expectations of the firm leader was shown to promote a family firm image and risk taking. In turn, risk taking and family firm image contributed to firm performance. Accordingly, our study identifies why family ownership and family expectations can benefit family firm performance - through their influence on family firm image and entrepreneurial risk taking.

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The Link Between Family Firm Dynamics, Image and Firm Performance

2011-11-06 , Memili, Esra , Kellermanns, Franz W. , Eddleston, Kimberley H. , Zellweger, Thomas

In this study, we draw upon organizational identity theory to examine factors that lead to the creation of family firm image and investigate how a family firm image impacts firm performance. We find that family firm pride, community social ties, and long-term orientation are positively associated with the likelihood that a firm portrays itself as a family business to consumers and stakeholders. In turn, we find that a family firm image benefits firm performance. Thus, our study demonstrates that by building a family firm image the unique family influences on the firm can be leveraged to create a competitive advantage for family firms.