Community Socioemotional Wealth: Preservation, Succession, and Farming in Lancaster County, Pennsylvania

2020 ◽  
Vol 33 (3) ◽  
pp. 244-264
Author(s):  
Nancy B. Kurland ◽  
Sara Jane McCaffrey
Keyword(s):  
Family Firms ◽  
Community Level ◽  
Organizational Level ◽  
Family Farms ◽  
Socioemotional Wealth ◽  
Lancaster County ◽  
Farming Community ◽  
The Family ◽  
Level Of Analysis ◽  
Fertile Land

This study builds theory on socioemotional wealth (SEW) in family firms and, specifically, proposes a new concept, community SEW, that moves SEW beyond the organizational level of analysis to include the community level of analysis. We find that owner-managers of family farms prioritize preservation of farming on fertile land and protection of the farming community in their region over economic and, in some instances, family interests. That is, owner-managers’ SEW includes the community in which the family is embedded. We discuss implications for SEW research.

scholarly journals Hierarchical Dyadic Congruence in Family Firms: The Interplay of Supervisor and Supervisee Socioemotional Wealth Importance and Familial Status

2018 ◽  
Vol 43 (2) ◽  
pp. 322-329 ◽  
Author(s):  
Giovanna Campopiano ◽  
Emanuela Rondi
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Theoretical Basis ◽  
Family Firms ◽  
Socioemotional Wealth ◽  
Organization Behavior ◽  
Fine Grained ◽  
The Family ◽  
And Performance ◽  
The Relationship

We extend McLarty, Vardaman, and Barnett’s analysis of how family firm supervisor attributes, in terms of familial status and socioemotional wealth importance, affect supervisee performance by considering the supervisee attributes. We further integrate the concept of restricted and generalized social exchange to provide a theoretical basis for how hierarchical dyadic (in)congruence moderates the relationship between supervisee commitment and performance. By providing a more fine-grained conceptualization, we contribute to the family business literature at its organization behavior interface.

scholarly journals A Stakeholder Perspective on Family Firm Performance

2008 ◽  
Vol 21 (3) ◽  
pp. 203-216 ◽  
Author(s):  
Thomas M. Zellweger ◽  
Robert S. Nason
Keyword(s):  
Organizational Effectiveness ◽  
Family Firms ◽  
Performance Outcomes ◽  
Stakeholder Satisfaction ◽  
Positive Performance ◽  
Nonfinancial Performance ◽  
The Family ◽  
Stakeholder Perspective ◽  
The Common ◽  
Level Of Analysis

Through the lens of stakeholder theory, this article deepens our understanding of financial and nonfinancial performance outcomes in family firms across multiple stakeholder categories, including the family level of analysis. Based on this foundation, we develop a typology of performance relationships between performance outcomes: overlapping, causal, synergistic, and substitutional. We argue that these relationships, when used between constructive (positive) performance outcomes, are able to increase stakeholder satisfaction, which in turn increases organizational effectiveness. Through this analysis, we extend the common one-dimensional and cause-effect understanding of performance in family firms and move toward a comprehensive stakeholder performance perspective, which provides insights for increasing organizational effectiveness of family firms.

Socioemotional wealth in the family farm

2015 ◽  
Vol 75 (3) ◽  
pp. 403-415 ◽  
Author(s):  
Jonathan B Dressler ◽  
Loren Tauer
Keyword(s):  
Family Member ◽  
Family Business ◽  
Research Literature ◽  
Lower Amount ◽  
Farm Income ◽  
Family Farm ◽  
Family Farms ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Family

Purpose – A family member may work for the family business even though the direct financial benefits he or she may receive in the form of a salary may be lower than what could be earned working for a non-family business. The lower amount may be accepted because of benefits of association with the family business. This psychic non-pecuniary return has been called socioemotional wealth in the family business research literature. The purpose of this paper is to propose a method to estimate socioemotional wealth and apply that technique to a group of family dairy farms to estimate socioemotional wealth for those family farms. Design/methodology/approach – A panel regression method was used to empirically allocate net farm income to the unpaid factors of equity, labor, and management provided by a family member in a family farm partnership. The estimated returns of labor plus management are compared to the market salary earned by farm managers who manage farms. The difference between the higher hired farm manager salary and what the family manager earns in the family farm from labor and management is an estimate of the non-pecuniary return the family member receives from managing the family farm as compared to managing the non-family farm. Findings – Differences in managers’ salary working for the non-family farm and the implied family manager financial compensation estimates indicate that family business managers’ non-pecuniary return from managing the family farm had an implied economic value averaging $22,026 per year over 1999-2008. Assuming that the manager would be indifferent between working for the family farm or the non-family farm if the sum of pecuniary and non-pecuniary returns were the same, the non-pecuniary annual benefits of $22,026 accrues in the form of socioemotional wealth associated as a member in the family business. Originality/value – Although the literature discusses how family members may accept a lower salary working for the family business than they could earn doing comparable work in a non-family business because of non-financial rewards they experience working for the family business, there have been no estimates of the value of this pecuniary benefit. The authors arrive at an estimate using a group of family dairy farm businesses that have multiple family managers.

Technological innovation and socioemotional wealth in family firm research

2018 ◽  
Vol 16 (3) ◽  
pp. 270-301 ◽  
Author(s):  
Rubén Martínez-Alonso ◽  
María J. Martínez-Romero ◽  
Alfonso A. Rojo-Ramírez
Keyword(s):  
Conceptual Framework ◽  
Technological Innovation ◽  
Family Business ◽  
Family Firms ◽  
Current Knowledge ◽  
Integrative Approach ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Family ◽  
New Research

Purpose There are currently two issues that generate growing interest among specialized scholars within the family business field: technological innovation (TI) and socioemotional wealth (SEW). While it is true that both topics are highly popular among researchers, the joint study of both perspectives is scarce. Thus, the purpose of this paper is to analyse the interrelationships between TI and SEW in the context of family firms. Design/methodology/approach This literature review systematically analyses the findings of 25 journal articles focusing on TI and SEW, published between 2012 and 2018. Findings The findings reveal an integrative approach, identifying different variables that relate TI and SEW. A conceptual framework is built in which these variables are incorporated into four categories (SEW, TI, moderating effects and performance). New lines of research emerge with the development of a conceptual model and the formulation of six propositions. Practical implications The conceptual framework can be useful as integrative summary of the factors that family business managers and directors should take into account to be successful in implementing innovative projects and strategies. Originality/value The study of TI from the SEW approach has emerged as a fruitful field of research in recent years, but the current knowledge of the role that SEW plays in family firms’ TI is still scarce. This paper contributes to the family business literature by offering a conceptual framework of the SEW–TI relationship and new research avenues that will provide a better comprehension for scholars and specialists for future investigations in the field.

Socioemotional Wealth in Family Firms

2012 ◽  
Vol 25 (3) ◽  
pp. 258-279 ◽  
Author(s):  
Pascual Berrone ◽  
Cristina Cruz ◽  
Luis R. Gomez-Mejia
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Socioemotional Wealth ◽  
Future Studies ◽  
Theoretical Approaches ◽  
The Family ◽  
Different Dimensions ◽  
Dominant Paradigm

This article makes the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field. The authors argue that SEW is the most important differentiator of the family firm as a unique entity and, as such, helps explain why family firms behave distinctively. In doing so, the authors review the concept of SEW, its different dimensions, and its links with other theoretical approaches. The authors also address the issue of how to measure this construct and offer various alternatives for operationalizing it. Finally, they offer a set of topics that can be pursued in future studies using the SEW approach.

scholarly journals Contextualizing employment outcomes in family business research: current findings and future research avenues

2021 ◽  
Author(s):  
Stefano Amato ◽  
Rodrigo Basco ◽  
Nicola Lattanzi
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Employment Outcomes ◽  
Future Research ◽  
Firm Level ◽  
The Family ◽  
Aggregate Effect ◽  
Level Of Analysis

AbstractThe empirical evidence of family business phenomenon in terms of employment outcomes is contradictory highlighting the micro–macro gap in the existing research. To address this contradiction, our study disentangles the role of context in family firms’ employment outcomes. To do so, we conduct a systematic literature review of 67 articles focusing on three employment-related outcomes—namely, growth, downsizing, and quality of labour—published in peer-reviewed journals from 1980 to 2020. Based on a two-by-two framework to classify this extant research, we unpack what we know about family firms and employment outcomes and where we can go from here. We highlight three main findings. First, current research is context-less since has mainly focused on the firm level in one context (i.e., region or country) and there is a lack of studies comparing family firms’ employment outcomes in different contexts and explicitly measuring the effects of contextual dimensions on family firms’ employment outcomes. This context-less approach could explain the conflicting results and lack of theoretical predictability about the family effect on employment across contexts. Second, the lack of understanding of the context in which family firms dwell highlights the need for future research to focus on context by theorizing about employment outcomes—that is, measuring context and its interactions with family- and job-related variables. Third, there is a need to further explore, analyse, and theorize on the aggregate effect of family firms on employment outcomes at different level of analysis (e.g., local, regional, and national).

scholarly journals Familiness and socioemotional wealth in Spanish family firms: An empirical examination

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Ismael Barros ◽  
Juan Hernangómez ◽  
Natalia Martin-Cruz
Keyword(s):  
Organizational Effectiveness ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Influence ◽  
Socioemotional Wealth ◽  
Empirical Examination ◽  
The Family ◽  
Spanish Family ◽  
The Impact

The socioemotional wealth (SEW) related to emotional endowments accumulated in the business by the family, is one of the most important features that differentiate the family firms of other organizations. However, there are few studies developed in the context of the antecedents and consequences of the building and use of SEW in the family business. Therefore, this study, using a sample of Spanish family firms that are non-publicly traded, explains how family influence affects the building and use of SEW and, thus, the organizational effectiveness of the family firm. The results indicate mixed results regarding the impact of the family involvement on the essence. Those suggest a positive relationship between building and use of SEW and organizational effectiveness of the family business.

Managing family business tensions: the narrative of family history

2020 ◽  
Vol 15 (5) ◽  
pp. 669-686
Author(s):  
Rocio Arteaga ◽  
Timur Uman
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Methodological Approach ◽  
Family Members ◽  
Governance Structure ◽  
Future Research ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Family Meetings ◽  
The Family

PurposeThis study explores the family governance structures that family firms employ to manage family business tensions.Design/methodology/approachBuilding on socioemotional wealth perspective and adopting a narrative methodological approach, the study analyses nine unique narratives of representatives of three Swedish family firms.FindingsThe study illustrates how the hybrid arena created between formal and informal family meetings is used as a governance structure for mitigating tensions by reinforcing family relational ties.Research limitations/implicationsBased on the findings, this study suggests how reliance on hybrid arena informs the field of family business management and governance and suggests future research directions.Practical implicationsThe findings of this study provide opportunities for family business practitioners, including owners, family members, family firm advisers and other stakeholders, to effectively manage family business tensions and foster socioemotional wealth.Originality/valueIn family firms, tensions can arise due to a desire for the preservation of socioemotional wealth. The authors show that these tensions may be managed by using informal and formal family meetings that create a hybrid arena where family members separate family and business issues and emotional and rational reactions, thereby avoiding negative emotions and creating a culture of harmony within the family.

scholarly journals When is Ambivalence Good for Family Firms? Understanding the Impact of Family Managers’ Emotional Ambivalence on Decision Making

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Shainaz Firfiray ◽  
Luis R. Gomez-Mejia
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Negative Impact ◽  
Dark Side ◽  
Positive Outcomes ◽  
Socioemotional Wealth ◽  
Emotional Ambivalence ◽  
The Family ◽  
The Impact

Abstract It has been suggested in the family business literature that the pursuit of socioemotional wealth (SEW) has both a bright and dark side and these conflicting priorities can have a negative impact on the quality of decisions made by family managers. This paper presents a model which recognizes that ambivalence emanating from socioemotional wealth may also lead to high calibre decision-making under certain contexts. In particular, we explain how emotional ambivalence can affect the decision-making abilities of family managers. Although emotional complexity and the resulting ambivalence is seen as an undesirable situation, we argue that this could also result in positive outcomes under certain circumstances. More specifically, emotional ambivalence prompts leaders to adopt a broader perspective and consider several alternatives before reaching a decision, hence enhancing decision-making quality. However, we acknowledge that emotional ambivalence may also lead to an overly restrictive focus on the family’s interests occasionally leading to inferior family-centric decisions.

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