Out of the Comfort Zone! Family Leaders’ Subsidiary Ownership Choices and the Role of Vulnerabilities

Pongelli, Claudia; Calabrò, Andrea; Quarato, Fabio; Minichilli, Alessandro; Corbetta, Guido

doi:10.1177/08944865211050858

Cited by 19 publications

(16 citation statements)

References 70 publications

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“…In addition, while these companies are under first generation management, the effects of SEW on financial debt become still more negative (Esparza-Aguilar et al, 2021). Pongelli et al (2021) apply an SEW approach to a sample of 586 family firms and report their preference for full ownership over subsidiaries rather than joint ventures in decisionmaking over entering international markets. However, in seeking non-economic advantages, family firms must also bear non-economic costs at different levels: individual, group, family and organisational, which may drive short-sighted behaviours, resulting in long-term, undesirable effects for the generations involved in subsequent business transfer processes (Ferrari, 2020).…”

Section: Thematic Groupsmentioning

confidence: 99%

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The socioemotional wealth of leaders in family firm succession and corporate governance processes: a systematic literature review

Marques

Leitão²,

Ferreira³

et al. 2023

IJEBR

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PurposeAdopting the research concept of socioemotional wealth (SEW) as applied to family firm leaders, this study aims to analyse the literature on succession and corporate governance processes in family firms in keeping with this still developing concept and thereby not only contributing to advancing knowledge on this field but also proposing a conceptual model of analysis and a future research agenda.Design/methodology/approachThe authors carried out a review and systematisation of the literature according to its different thematic groups through recourse to VOSviewer software and content analysis to establish a systematised and integrated structure of the reference literature based on a sample of 218 studies published and indexed on the Web of Science and SCOPUS databases between 2010 and 2021.FindingsThe results portray five leading clusters, specifically, (1) SEW and family firm performance; (2) SEW and the focus on leadership as a precursor to succession; (3) family firms, SEW and corporate social governance; (4) family firm innovation and performance; and (5) family ownership and management. The authors then put forward a conceptual model of analysis both to better integrate these topics and as a proposition for application in future research projects.Originality/valueThe study provides a new and solid systematisation of the literature and supports the argument that family firms concentrating on developing the leader's SEW increase the probability of structuring a successful succession process as well as the likelihood of achieving higher quality corporate governance.

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Section: Thematic Groupsmentioning

confidence: 99%

“…Pongelli et al . (2021) apply an SEW approach to a sample of 586 family firms and report their preference for full ownership over subsidiaries rather than joint ventures in decision-making over entering international markets.…”

Section: Thematic Groupsmentioning

confidence: 99%

The socioemotional wealth of leaders in family firm succession and corporate governance processes: a systematic literature review

Marques

Leitão²,

Ferreira³

et al. 2023

IJEBR

View full text Add to dashboard Cite

show abstract

“…First, compared with minority shareholdings, majority-owned FDIs entail greater resource commitments for the expanding organization, which enhances SEW losses at home in terms of noneconomic detriments to local stakeholders and financial strains over the parent organization. Furthermore, majority-owned FDIs also involve stronger psychological and cognitive commitments abroad by family members (Pongelli et al, 2021). Based on the assumption of humans' limited cognitive capacities, family members' inclination to exert personal control over subsidiaries overseas likely translates into decreased effort and attention to business dealings at home, further depressing the relationship with local stakeholders and external fund providers.…”

Section: The Moderating Effect Of Entry Mode: Majority-owned Fdismentioning

confidence: 99%

International Expansion and Firm Growth in Domestic Markets: Family Versus Non-Family Firms

Zona

Bannò

Coller

2022

Family Business Review

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This study examines the effects of international expansion on domestic growth in family firms (FFs) versus non-FFs. Integrating international business research into socioemotional wealth (SEW) theory, we argue that FFs seek to compensate for SEW losses (as implied by foreign direct investments) with SEW gains (associated with domestic growth). We claim that FFs are less prone to substitute home businesses with foreign activities and more likely to move back resources to foster domestic growth. Geographical diversification and modes of entry foster FFs’ domestic growth to an even greater extent. A test conducted on Italian firms supports these hypothesized effects.

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“…As long as our personal development continues our lives gather more sense. Progressively, we define superior objectives, and we create a long-term-based personal view ( Pongelli et al, 2021 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Tourists’ apprehension toward choosing the next destination: A study based on the learning zone model

et al. 2022

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The current research is based on Senninger’s Learning Zone Model applied to the tourists’ comfort zone. This model was created in 2000 and it proved to be useful in many applied areas: Psychology, Sociology, Marketing and Management. This modes is a behavioral one and shows how a person can justify his action based on previous tested experiences (comfort zone) or dares to step beyond in fear, learn or growth zone. Our research is extending the existent area of expertise to tourism. We aimed at exploring whether the tourists’ apprehension toward choosing their next destination from a comfort zone perspective or rather from the other zones’ perspectives such as fear, learning or growth. To meet this purpose we conducted a mixed method: firstly a qualitative one, an in-depth interview based on Delphi method with 10 tourism specialists and secondly an online survey on 208 Generation Z tourists. The interviews were meant to help developing a 20 items scale (5 items for each level of the model) to measure from which of the 4 zones are the respondents making the choice of the future travel destination. Our conclusions show that Gen Z tourists display behaviors that can be associated with learning or growth zones rather than the comfort zone. This is relevant when choosing the next travel destination, because our findings could bring about a new approach to promoting tourist destinations as part of various products. As a result, a large range of managerial tools can better adapt the promotion messages to the target market from a new psychological perspective.

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Out of the Comfort Zone! Family Leaders’ Subsidiary Ownership Choices and the Role of Vulnerabilities

Cited by 19 publications

References 70 publications

The socioemotional wealth of leaders in family firm succession and corporate governance processes: a systematic literature review

The socioemotional wealth of leaders in family firm succession and corporate governance processes: a systematic literature review

International Expansion and Firm Growth in Domestic Markets: Family Versus Non-Family Firms

Tourists’ apprehension toward choosing the next destination: A study based on the learning zone model

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