Predictors of Later–Generation Family Members’ Commitment to Family Enterprises

Abstract

This study examines the antecedents of different bases of organizational commitment and intention to stay of later-generation family members who are currently working in their family firm. Evidence from 199 Canadian and Swiss firms indicates that when these individuals' identity and career interests are aligned with their family enterprise, they experience affective commitment. Family expectations are associated with normative commitment. Individuals who are concerned about losing inherited financial wealth or who perceive a lack of alternative career paths stay with the family enterprise because of continuance commitment. Finally, individuals driven by desire or obligation exhibit low turnover intentions.

Perceived Parental Behaviors and Next-Generation Engagement in Family Firms: A Social Cognitive Perspective

“…As such, we extend prior work on self-efficacy and commitment in family firms (Dawson et al, 2015;Zellweger et al, 2011). Regarding self-efficacy, existing studies focus on role modeling processes as the primary mechanism of influence.…”

“…The difference lies with whether parental support is given as a means to increase emotional attachment to the family firm (affective commitment) or primarily as means to reinforce expectations of reciprocity (normative commitment). Indeed, family expectations significantly predict next-generation members' obligation to remain in the family firm (Dawson et al, 2015). Thus: Parental Psychological Control and Family Business Self-Efficacy.…”

“…Such control involves limiting the independence and autonomy of next-generation members, preventing them from exploring alternative career paths. Limited exploration of alternative career paths induces risk and uncertainty, increasing the "costs" associated with pursuing careers outside the family firm (Dawson et al, 2015). Further, controlling parents may increase economic and social costs associated with leaving the family firm by offering financial rewards or highlighting the risk of ostracism (Nicholson, 2015 Family Business Self-Efficacy, Commitment, and Next-generation Engagement.…”

“…However, those who join their family business based on either strong identification with the firm or perceived alignment of career interests with opportunities in the business perform well and enjoy fulfilling careers (Dawson, Sharma, Irving, Marcus, & Chirico, 2015). Their performance is even stronger when perceived family obligation drives next-generation members to join their family firm (Dawson, Irving, Sharma, Chirico, & Marcus, 2014).…”

Family firms, risk-taking and financial distress

“…Wilson et al (2013) addressed this issue when studying a large sample of UK private firms for the period 2007-2010, finding that family businesses are more likely to survive than non-family firms. To the best of our knowledge, no study has developed these issues after this pioneering research, which analyzes firms operating in a market-based economy.…”