TY - JOUR
T1 - Socioemotional Wealth as a Mixed Gamble
T2 - Revisiting Family Firm R&D Investments With the Behavioral Agency Model
AU - Gomez-Mejia, Luis R.
AU - Campbell, Joanna Tochman
AU - Martin, Geoffrey
AU - Hoskisson, Robert E.
AU - Makri, Marianna
AU - Sirmon, David G.
N1 - Publisher Copyright:
© 2013 Baylor University.
PY - 2014/11/1
Y1 - 2014/11/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84908113409&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84908113409&partnerID=8YFLogxK
U2 - 10.1111/etap.12083
DO - 10.1111/etap.12083
M3 - Article
AN - SCOPUS:84908113409
SN - 1042-2587
VL - 38
SP - 1351
EP - 1374
JO - Entrepreneurship Theory and Practice
JF - Entrepreneurship Theory and Practice
IS - 6
ER -