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

89 Citations (Scopus)

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 2013
Externally publishedYes

Fingerprint

Liability
Family firms
Assets
Socioemotional wealth
Social norms
Transparency
Industrial districts
Stock exchange
Chief executive officer

ASJC Scopus subject areas

  • Economics and Econometrics
  • Business and International Management

Cite this

Preserving socioemotional wealth in family firms : Asset or liability? The moderating role of business context. / Naldi, Lucia; Cennamo, Carmelo; Corbetta, Guido; Gomez-Mejia, Luis.

In: Entrepreneurship: Theory and Practice, Vol. 37, No. 6, 11.2013, p. 1341-1360.

Research output: Contribution to journalArticle

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