Socioemotional Wealth and Proactive Stakeholder Engagement

Why Family-Controlled Firms Care More About Their Stakeholders

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

Research output: Contribution to journalArticle

186 Citations (Scopus)

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 2012
Externally publishedYes

Fingerprint

Stakeholders
Family firms
Stakeholder engagement
Socioemotional wealth
Factors
Business research
Logic
Family business

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

Cite this

Socioemotional Wealth and Proactive Stakeholder Engagement : Why Family-Controlled Firms Care More About Their Stakeholders. / Cennamo, Carmelo; Berrone, Pascual; Cruz, Cristina; Gomez-Mejia, Luis.

In: Entrepreneurship: Theory and Practice, Vol. 36, No. 6, 11.2012, p. 1153-1173.

Research output: Contribution to journalArticle

@article{702635c1b45c432e921d878647c3c689,
title = "Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family-Controlled Firms Care More About Their Stakeholders",
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.",
author = "Carmelo Cennamo and Pascual Berrone and Cristina Cruz and Luis Gomez-Mejia",
year = "2012",
month = "11",
doi = "10.1111/j.1540-6520.2012.00543.x",
language = "English (US)",
volume = "36",
pages = "1153--1173",
journal = "Entrepreneurship Theory and Practice",
issn = "1042-2587",
publisher = "Wiley-Blackwell",
number = "6",

}

TY - JOUR

T1 - Socioemotional Wealth and Proactive Stakeholder Engagement

T2 - Why Family-Controlled Firms Care More About Their Stakeholders

AU - Cennamo, Carmelo

AU - Berrone, Pascual

AU - Cruz, Cristina

AU - Gomez-Mejia, Luis

PY - 2012/11

Y1 - 2012/11

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=84876185219&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84876185219&partnerID=8YFLogxK

U2 - 10.1111/j.1540-6520.2012.00543.x

DO - 10.1111/j.1540-6520.2012.00543.x

M3 - Article

VL - 36

SP - 1153

EP - 1173

JO - Entrepreneurship Theory and Practice

JF - Entrepreneurship Theory and Practice

SN - 1042-2587

IS - 6

ER -