Socioemotional Wealth as a Mixed Gamble: Revisiting Family Firm R&D Investments With the Behavioral Agency Model

Luis Gomez-Mejia, Joanna Tochman Campbell, Geoffrey Martin, Robert E. Hoskisson, Marianna Makri, David G. Sirmon

Research output: Contribution to journalArticle

141 Citations (Scopus)

Abstract

Theoretical explanations for family firm underinvestment in R&D relative to nonfamily firms remain nascent. We revisit this question using a refinement to the behavioral agency model (BAM)-the mixed gamble-that allows us to examine the socioemotional trade-offs that R&D represents for the family firm and how this differentiates their R&D investment decision from nonfamily firms. We do so in an empirical context where R&D investment is of greatest importance-high-technology industries. Moreover, we examine three contingencies that allow us to explore heterogeneity across family firms in their R&D decisions due to their effect upon the family's socioemotional wealth mixed gamble: institutional investor ownership, related diversification, and performance hazard.

Original languageEnglish (US)
Pages (from-to)1351-1374
Number of pages24
JournalEntrepreneurship: Theory and Practice
Volume38
Issue number6
DOIs
StatePublished - Nov 1 2014
Externally publishedYes

Fingerprint

Agency model
Socioemotional wealth
Family firms
Gambles
Ownership
Contingency
Institutional investors
Trade-offs
Underinvestment
Investment decision
High technology industry
Hazard
Diversification

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

Cite this

Socioemotional Wealth as a Mixed Gamble : Revisiting Family Firm R&D Investments With the Behavioral Agency Model. / Gomez-Mejia, Luis; Campbell, Joanna Tochman; Martin, Geoffrey; Hoskisson, Robert E.; Makri, Marianna; Sirmon, David G.

In: Entrepreneurship: Theory and Practice, Vol. 38, No. 6, 01.11.2014, p. 1351-1374.

Research output: Contribution to journalArticle

Gomez-Mejia, Luis ; Campbell, Joanna Tochman ; Martin, Geoffrey ; Hoskisson, Robert E. ; Makri, Marianna ; Sirmon, David G. / Socioemotional Wealth as a Mixed Gamble : Revisiting Family Firm R&D Investments With the Behavioral Agency Model. In: Entrepreneurship: Theory and Practice. 2014 ; Vol. 38, No. 6. pp. 1351-1374.
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