Preserving socioemotional wealth in family firms: Asset or liability? The moderating role of business context

Lucia Naldi, Carmelo Cennamo, Guido Corbetta, Luis Gomez-Mejia

Research output: Contribution to journalArticle

106 Scopus citations

Abstract

We ask whether choices aimed at preserving socioemotional wealth (SEW) represent an asset or a liability in family-controlled firms. Specifically, we consider one major SEW-preserving mechanism-having as chief executive officer (CEO) a member of the controlling family-and hypothesize that this choice is (1) an asset in business contexts, such as industrial districts, in which tacit rules and social norms are relatively more important, but (2) a potential liability in contexts like stock exchange markets, where formal regulations and transparency principles take center stage.

Original languageEnglish (US)
Pages (from-to)1341-1360
Number of pages20
JournalEntrepreneurship: Theory and Practice
Volume37
Issue number6
DOIs
StatePublished - Nov 1 2013
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

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