Final published version
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Family Control, Political Risk and Employment Security
T2 - A Cross‐National Study
AU - Gómez‐Mejía, Luis R.
AU - Sanchez‐Bueno, Maria J.
AU - Miroshnychenko, Ivan
AU - Wiseman, Robert M.
AU - Muñoz‐Bullón, Fernando
AU - De Massis, Alfredo
PY - 2024/9/30
Y1 - 2024/9/30
N2 - Combining insights from the socioemotional wealth and institutional perspectives, we hypothesize that firms controlled by families offer greater job security to employees relative to non‐family firms, and this positive employment effect is amplified in riskier institutional environments around the world. Using an unbalanced panel of 3181 listed firms from 33 countries over a 10‐year period, we provide strong support for our hypotheses: family‐controlled firms on average are less likely to reduce their workforce compared to their non‐family counterparts, and this differential effect is magnified in weak institutional environments characterized by high political risk. These findings indicate that socioemotional wealth in family firms has a positive impact on employee welfare and that the use of a cross‐country design serves to bridge discrepancies or inconsistencies in single country studies that have been done in the past. From a practical perspective we conclude that the beneficial role of socioemotional wealth on employment relations is more evident when it is needed the most, namely under a dysfunctional institutional environment.
AB - Combining insights from the socioemotional wealth and institutional perspectives, we hypothesize that firms controlled by families offer greater job security to employees relative to non‐family firms, and this positive employment effect is amplified in riskier institutional environments around the world. Using an unbalanced panel of 3181 listed firms from 33 countries over a 10‐year period, we provide strong support for our hypotheses: family‐controlled firms on average are less likely to reduce their workforce compared to their non‐family counterparts, and this differential effect is magnified in weak institutional environments characterized by high political risk. These findings indicate that socioemotional wealth in family firms has a positive impact on employee welfare and that the use of a cross‐country design serves to bridge discrepancies or inconsistencies in single country studies that have been done in the past. From a practical perspective we conclude that the beneficial role of socioemotional wealth on employment relations is more evident when it is needed the most, namely under a dysfunctional institutional environment.
KW - socioemotional wealth
KW - family firms
KW - employment security
KW - institutional voids
U2 - 10.1111/joms.12970
DO - 10.1111/joms.12970
M3 - Journal article
VL - 61
SP - 2338
EP - 2372
JO - Journal of Management Studies
JF - Journal of Management Studies
SN - 0022-2380
IS - 6
ER -