Persistence Decisions: It’s Not Just About the Money

Abstract

Drawing on threshold theory, we examine the effects of attributes of alternative opportunities on persistence decisions of family business entrepreneurs. The results of our conjoint experiment show that: (a) family business entrepreneurs are generally more persistent than other entrepreneurs and (b) family business entrepreneurs focus more on non-financial benefits than other entrepreneurs. Our study contributes to persistence literature within the family business context and provides a good basis for how family business literature can benefit from multi-level theoretical and empirical modelling.

Torn between individual aspirations and the family legacy – individual career development in family firms

“…Alternative paths are illustrated by dashed arrows, leaving and returning to the family business path. An upbringing in a family business context inevitably entails the socialization into it, affecting how family members make choices about their careers (see also Dyer, 2006; Ma et al. , 2019).…”

“…Family firms tend to be less concerned with profit maximization and instead stress the significance of family and social agendas within the organization (Westhead and Howorth, 2007), and family-centered, non-economic goals are often important (Chrisman et al. , 2012; Ma et al. , 2019).…”

“…Family members of the next generation tend to put their own needs after that of the family (Eckrich and Loughead, 1996; Murphy and Lambrechts, 2015), yet, families and their impact on work decisions vary (Powell and Greenhouse, 2012). Leaving the family firm could be seen by other family members, and oneself, as abandoning the family legacy (Ma et al. , 2019).…”

“…When choosing a successor to take over the family business, they tend to evaluate aspects beyond the traditional focus on education, training and experience, by valuing commitment to the business, emotional attachment and fit with the business needs (Schell et al, 2020). Family firms tend to be less concerned with profit maximization and instead stress the significance of family and social agendas within the organization (Westhead and Howorth, 2007), and family-centered, non-economic goals are often important (Chrisman et al, 2012;Ma et al, 2019). Family firms also differ regarding their approach to educating the next generation where informal training, mentorship and supervision is emphasized over formal education (Fiegener et al, 1994).…”

“…Family members of the next generation tend to put their own needs after that of the family (Eckrich and Loughead, 1996;Murphy and Lambrechts, 2015), yet, families and their impact on work decisions vary (Powell and Greenhouse, 2012). Leaving the family firm could be seen by other family members, and oneself, as abandoning the family legacy (Ma et al, 2019). As family ties create a strong sense of solidarity and commitment, even family members who choose a career outside the family business tend to continue helping the family firm (Murphy and Lambrechts, 2015).…”