Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family–Controlled Firms Care More about their Stakeholders

Cennamo, Carmelo; Berrone, Pascual; Cruz, Cristina; Gómez‐Mejía, Luis R.

doi:10.1111/j.1540-6520.2012.00543.x

Cited by 548 publications

(650 citation statements)

References 130 publications

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“…Researchers suggest that the value given to non-economic aspects of the firm affects the decisions and behaviors that family managers and owners follow in their business [60]. This is not to say that family business owners ignore the importance of business or financial aspects of the firm [46].…”

Section: Importance Given To the Family And The Businessmentioning

confidence: 99%

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Boyd

Botero

Fediuk³

2014

IJFS

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Abstract:In the family business literature, succession research has focused on the family member as they enter the leadership role or on the different issues that affect the succession process. Although researchers have acknowledged that succession in family businesses is "punctuated" by decision making events, less attention has been given to understanding how incumbents make decisions about ownership and management transitions. In an effort to continue to understand the succession process it is important to understand how incumbents make decisions about the type of transitions they intend to engage in (i.e., intra-family succession, out of family succession, or no succession). Building on the theory of planned behavior and the socioemotional wealth framework (SEW), this manuscript presents a conceptual framework to understand the factors that influence succession transitions and the role that contextual factors can play in this decision-making process. We present theory driven propositions and discuss the implications for understanding and evaluation of the succession process.

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Section: Importance Given To the Family And The Businessmentioning

confidence: 99%

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Boyd

Botero

Fediuk³

2014

IJFS

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“…Consequently, many authors (e.g., Longo et al, 2005 [34], Abreu et al, 2005 [35], Uhlaner et al, 2004 [36] or Papasolomou et al, 2005 [37]) have favored this approach. More innovative research is based on "proactive stakeholder engagement" (PSE), which is defined as the willingness of businesses to anticipate the needs of their stakeholders and develop practices that meet these needs ( [23]; Sharma, 2000 [38]). Mitchell et al (1997) [39] provide a deeper insight into the identification of stakeholders and their influence.…”

Section: Csr and Proactive Stakeholder Engagementmentioning

confidence: 99%

“…Recent literature explains the PSE of family businesses in terms of the creation and preservation of SEW [21][22][23][24], which goes beyond simple financial objectives. The approach provides an integrated framework to explain the higher levels of social responsibility found in family businesses.…”

Section: Proactive Stakeholder Engagement (Pse) and Socioemotional Wementioning

confidence: 99%

The Corporate Social Responsibility of Family Businesses: An International Approach

Hirigoyen

Poulain-Rehm

2014

IJFS

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This study analyzes the links between listed family businesses and social responsibility. On the theoretical level, it establishes a relationship between socioemotional wealth, proactive stakeholder engagement, and the social responsibility of family businesses. On a practical level, our results (obtained from a sample of 363 companies) show that family businesses do not differ from non-family businesses in many dimensions of social responsibility. Moreover, family businesses have statistically significant lower ratings for four sub-dimensions of "corporate governance", namely "balance of power and effectiveness of the Board", "audit and control mechanisms", "engagement with shareholders and shareholder structure", and "executive compensation".

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“…In other words, family owners are motivated to engage in corporate philanthropic activities mainly because of the extrinsic value derived from such activities (Cennamo, Berrone, Cruz, & Gomez-Mejia, 2012). However, family owners can also be interested in charity in and of itself, and they may derive intrinsic satisfaction by engaging in corporate philanthropic activities.…”

Section: Drivers Of Charitable Donationsmentioning

confidence: 99%

Why Do Family-controlled Firms Donate to Charity? The Role of Intrafamily Succession Intention, Social Status, and Religiosity

et al. 2015

Manag. Organ. Rev.

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Drawing on expectancy theory and the socioemotional wealth (SEW) perspective, we propose that family owners with intrafamily succession intention are more motivated to accumulate or preserve SEW. As corporate philanthropy is a critical way for family-controlled firms to accumulate or maintain SEW, family owners with intrafamily succession intention are more likely to engage in corporate philanthropic activities. Data on a nationally representative sample of family-controlled firms in China support our prediction. We also find that the relationship between intrafamily succession intention and corporate philanthropy is moderated by family owners' social status and religiosity. The findings contribute to our understanding about family businesses, in general, and those in China, in particular, as well as the SEW perspective.

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Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family–Controlled Firms Care More about their Stakeholders

Cited by 548 publications

References 130 publications

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

The Corporate Social Responsibility of Family Businesses: An International Approach

Why Do Family-controlled Firms Donate to Charity? The Role of Intrafamily Succession Intention, Social Status, and Religiosity

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