Final published version
Licence: CC BY: Creative Commons Attribution 4.0 International License
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 owners' fear of losing socio-emotional wealth: Implications for firm innovativeness
AU - Hu, Qilin
AU - Hughes, Mathew
AU - Hughes, Paul
PY - 2023/10/31
Y1 - 2023/10/31
N2 - By integrating literature on behavioral agency theory and fear as an emotional lens, we develop a theoretical framework explaining how family owners' fear of losing specific dimensions of socio-emotional endowments influence family firm innovativeness. Our analysis of data from a two-phased, multi-respondent, matched survey (n = 407) at two different time points from family SMEs (n = 207) in manufacturing industries in Chongqing, China, shows that socio-emotional preferences, and the fear attached to losing specific endowments, activate or constrain innovativeness. Family owners' fear of losing family control and influence increases firm innovativeness, as do family owners' fear of losing guanxi (social bonds). However, family owners' fear of losing identification with the business among family members decreases firm innovativeness, as do family owners' fear of being unable to renew family bonds. By deepening current understanding of fear and the perceived danger of losing socio-emotional wealth as determinants of firm innovativeness, our findings offer important implications for theory and practice, correcting for the inattention to sentiments and emotional preferences family owners may or may not have towards specific socio-emotional dimensions in their strategic choices.
AB - By integrating literature on behavioral agency theory and fear as an emotional lens, we develop a theoretical framework explaining how family owners' fear of losing specific dimensions of socio-emotional endowments influence family firm innovativeness. Our analysis of data from a two-phased, multi-respondent, matched survey (n = 407) at two different time points from family SMEs (n = 207) in manufacturing industries in Chongqing, China, shows that socio-emotional preferences, and the fear attached to losing specific endowments, activate or constrain innovativeness. Family owners' fear of losing family control and influence increases firm innovativeness, as do family owners' fear of losing guanxi (social bonds). However, family owners' fear of losing identification with the business among family members decreases firm innovativeness, as do family owners' fear of being unable to renew family bonds. By deepening current understanding of fear and the perceived danger of losing socio-emotional wealth as determinants of firm innovativeness, our findings offer important implications for theory and practice, correcting for the inattention to sentiments and emotional preferences family owners may or may not have towards specific socio-emotional dimensions in their strategic choices.
KW - Innovativeness
KW - Family firm
KW - Socio-emotional
KW - Fear
KW - Loss
KW - Emotion
KW - Behavioral agency theory
KW - Family owner
U2 - 10.1016/j.lrp.2022.102263
DO - 10.1016/j.lrp.2022.102263
M3 - Journal article
VL - 56
JO - Long Range Planning
JF - Long Range Planning
SN - 0024-6301
IS - 5
M1 - 102263
ER -