Out of the Comfort Zone! Family Leaders’ Subsidiary Ownership Choices and the Role of Vulnerabilities

2021 ◽  
pp. 089448652110508
Author(s):  
Claudia Pongelli ◽  
Andrea Calabrò ◽  
Alessandro Minichilli ◽  
Fabio Quarato ◽  
Guido Corbetta
Keyword(s):  
Family Member ◽  
Joint Ventures ◽  
Family Firms ◽  
Leadership Position ◽  
Comfort Zone ◽  
Socioemotional Wealth ◽  
Foreign Markets ◽  
Distant Market ◽  
Subsidiary Ownership

Based on the socioemotional wealth approach and a sample of 3,904 subsidiary ownership choices made by 586 family firms, this study shows that family-managed firms (i.e., those family firms with a family member in a leadership position) prefer wholly owned subsidies over joint ventures when entering foreign markets. Family-managed firms are also more likely to revise their subsidiary ownership choices and form joint ventures when in vulnerability conditions, that is, when they experience performance below aspirations and when entering a culturally distant market.

The Internationalization of Family Firms

2013 ◽  
Vol 27 (2) ◽  
pp. 103-125 ◽  
Author(s):  
Thilo J. Pukall ◽  
Andrea Calabrò
Keyword(s):  
Theoretical Model ◽  
Family Firms ◽  
Future Research ◽  
Risk Attitudes ◽  
Journal Articles ◽  
Suggested Model ◽  
Socioemotional Wealth ◽  
Uppsala Model ◽  
Research Themes

This article systematically reviews and critically examines 72 journal articles published (from 1980 to 2012) on the internationalization of family firms. Stemming from existing literature, core aspects and main gaps are identified. We aim to overcome the inconclusiveness of findings of previous research by offering an integrative theoretical model integrating the concept of socioemotional wealth with the revised Uppsala model. Our framework helps understand behaviors of internationalizing family firms by focusing on when and how they internationalize, especially related to risk attitudes, the role of knowledge and networks. Ultimately, we provide future research themes flowing from our suggested model.

scholarly journals Contested takeovers of family firms and socioemotional wealth: a case study

2017 ◽  
Vol 12 (4) ◽  
pp. 447-463 ◽  
Author(s):  
Kevin Campbell ◽  
Magdalena Jerzemowska
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Warsaw Stock Exchange ◽  
Gains And Losses ◽  
Takeover Bids

Purpose The purpose of this paper is to provide an understanding of the importance of socioemotional wealth (SEW) to family firms in Poland viewed through the lens of the events surrounding the first hostile takeover bid of the post-communist era on the Warsaw Stock Exchange when the clothing company Vistula & Wólczanka (V&W) made an unsolicited, leveraged bid for the family-controlled jewelry company W. Kruk. Design/methodology/approach The 2008 takeover and its aftermath are described in the context of the corporate governance and legal environment in Poland. The case study events demonstrate the connection between firm behavior and SEW theory. Findings After the acquisition of W. Kruk by V&W, the Kruk family purchased stock in the newly named Vistula Group and gained influence over the supervisory board in concert with a business ally, eventually wresting back control of the company in the style of a Pac-Man “defense.” The case study illustrates the importance of SEW in family firm takeovers. Research limitations/implications The case study design has limitations for generalizability. Nevertheless the research highlights the important role of SEW preservation in understanding the market for corporate control of listed family firms in Poland. Practical implications Understanding the reaction by family firms to takeover bids requires recognition that there is a tradeoff between financial and SEW considerations, not just financial gains and losses. Originality/value The case study demonstrates the importance of SEW to family firms and suggests that the balance of power in takeovers on the Polish stock market rests with incumbent management.

The Effect of Organizational Characteristics on the Appointment of Nonfamily Managers in Private Family Firms

2014 ◽  
Vol 28 (2) ◽  
pp. 104-122 ◽  
Author(s):  
Pieter Vandekerkhof ◽  
Tensie Steijvers ◽  
Walter Hendriks ◽  
Wim Voordeckers
Keyword(s):  
Firm Size ◽  
Family Firms ◽  
Organizational Characteristics ◽  
Socioemotional Wealth ◽  
Firm Innovativeness ◽  
Firm Internationalization ◽  
Positive Effect ◽  
Moderating Role

This article examines the effect of organizational characteristics (firm innovativeness, firm internationalization, firm size) on the appointment of nonfamily managers in private family firms while taking into account the moderating role of socioemotional wealth (SEW). While these organizational characteristics increase the need for expertise, family firms cope with a limited pool of family managers. Therefore, new creative knowledge from nonfamily managers is needed. However, results from a sample of 145 Belgian family firms indicate that the positive effect of organizational characteristics on the integration of nonfamily managers decreases when family-related objectives reflected by SEW become more important for the firm.

Acquisitions by Family Firms: The Role of Socioemotional Wealth

2012 ◽  
Vol 2012 (1) ◽  
pp. 13651 ◽  
Author(s):  
Tobias Dehlen ◽  
Thomas Markus Zellweger
Keyword(s):  
Family Firms ◽  
Socioemotional Wealth

scholarly journals Preserving Socioemotional Wealth in Family Firms: Asset or Liability? The Moderating Role of Business Context

2013 ◽  
Vol 37 (6) ◽  
pp. 1341-1360 ◽  
Author(s):  
Lucia Naldi ◽  
Carmelo Cennamo ◽  
Guido Corbetta ◽  
Luis Gomez-Mejia
Keyword(s):  
Family Firms ◽  
Socioemotional Wealth ◽  
Business Context ◽  
Moderating Role

The Impact of Socioemotional Wealth and Vulnerabilities on Family Firms' Subsidiary Ownership Choice

2019 ◽  
Vol 2019 (1) ◽  
pp. 11922
Author(s):  
Claudia Pongelli ◽  
Andrea Calabrò ◽  
Alessandro Minichilli ◽  
Fabio Quarato ◽  
Guido Corbetta
Keyword(s):  
Family Firms ◽  
Socioemotional Wealth ◽  
Ownership Choice ◽  
The Impact ◽  
Subsidiary Ownership
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