Dawn R. DeTienne is Associate Professor of Entrepreneurship, 207 Rockwell Hall, College of Business, Colorado State University, Fort Collins, CO 80523.
Exit Strategies in Family Firms: How Socioemotional Wealth Drives the Threshold of Performance
Article first published online: 30 SEP 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Family Business Special Issue
Volume 37, Issue 6, pages 1297–1318, November 2013
How to Cite
DeTienne, D. R. and Chirico, F. (2013), Exit Strategies in Family Firms: How Socioemotional Wealth Drives the Threshold of Performance. Entrepreneurship Theory and Practice, 37: 1297–1318. doi: 10.1111/etap.12067
We would like to thank the editor, two anonymous reviewers, and the Theories of Family Enterprise Conference (TOFE) for their constructive criticism on this paper. We are also in debt to the members of the Center for Family Enterprise and Ownership (CeFEO) from Jönköping International Business School for their helpful suggestions on earlier versions of this paper.
- Issue published online: 6 NOV 2013
- Article first published online: 30 SEP 2013
Although research has shown the ability to exit from both successful and unsuccessful ventures is important to founders, families, firms, industries, and overall economic health, exiting from a family firm can be especially challenging. In this paper, we examine exit strategies in the context of the family firm and the family firm portfolio. Drawing upon threshold theory and the socioemotional wealth perspective, we develop a model that provides guiding theoretical explanations for exit strategies. We address two questions: (1) why do family owners develop specific exit strategies, and (2) how do these strategies differ within family firms and family firm portfolios? In doing so, we contribute to family business, portfolio entrepreneurship, and exit literatures.