The Bind that ties

Socioemotional wealth preservation in family firms

Luis Gomez-Mejia, Cristina Cruz, Pascual Berrone, Julio de Castro

Research output: Contribution to journalReview article

606 Citations (Scopus)

Abstract

A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ from nonfamily firms along five broad categories of managerial decisions. These categories encompass a set of key organizational choices concerning management processes, firm strategies, corporate governance, stakeholder relations and business venturing. We argue that socioemotional wealth or affective endowment of family owners explain many of these choices. We also examine some contingency factors (namely family stage, firm size, firm hazard, and the presence of nonfamily shareholders) that moderate the influence of socioemotional wealth preservation as a point of reference when making managerial decisions in family firms. Lastly, we explore the firm performance consequences of family ownership.

Original languageEnglish (US)
Pages (from-to)653-707
Number of pages55
JournalAcademy of Management Annals
Volume5
Issue number1
DOIs
StatePublished - Jun 2011
Externally publishedYes

Fingerprint

Family firms
Socioemotional wealth
Contingency factors
Managerial decisions
Literature review
Managerial decision making
Stakeholder relations
Management process
Firm size
Owners
Family ownership
Endowments
Shareholders
Firm performance
Hazard
Firm strategy
Corporate governance

ASJC Scopus subject areas

  • Business and International Management
  • Organizational Behavior and Human Resource Management

Cite this

The Bind that ties : Socioemotional wealth preservation in family firms. / Gomez-Mejia, Luis; Cruz, Cristina; Berrone, Pascual; de Castro, Julio.

In: Academy of Management Annals, Vol. 5, No. 1, 06.2011, p. 653-707.

Research output: Contribution to journalReview article

Gomez-Mejia, Luis ; Cruz, Cristina ; Berrone, Pascual ; de Castro, Julio. / The Bind that ties : Socioemotional wealth preservation in family firms. In: Academy of Management Annals. 2011 ; Vol. 5, No. 1. pp. 653-707.
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