Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family-Controlled Firms Care More About Their Stakeholders

Carmelo Cennamo, Pascual Berrone, Cristina Cruz, Luis R. Gomez-Mejia

Research output: Contribution to journalArticle

218 Scopus citations

Abstract

While family business research has prominently recognized that family firms are motivated by nonfinancial factors, the literature has remained relatively silent about whether or not these firms are more likely than others to engage actively with their stakeholders, who often have nonpecuniary demands. This paper argues that family firms are more prone to adopt proactive stakeholder engagement (PSE) activities because by doing so they preserve and enhance their socioemotional wealth (SEW). We explore the impact of the different dimensions of SEW on PSE and identify distinctive logics that explain the adoption of such practices. Finally, we offer a set of topics for future studies.

Original languageEnglish (US)
Pages (from-to)1153-1173
Number of pages21
JournalEntrepreneurship: Theory and Practice
Volume36
Issue number6
DOIs
StatePublished - Nov 1 2012
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

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