Lucia Naldi is an Associate Professor at Jönköping International Business School, Box 1026, 551 11 Jönköping, Sweden.
Preserving Socioemotional Wealth in Family Firms: Asset or Liability? The Moderating Role of Business Context
Article first published online: 30 SEP 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Family Business Special Issue
Volume 37, Issue 6, pages 1341–1360, November 2013
How to Cite
Naldi, L., Cennamo, C., Corbetta, G. and Gomez-Mejia, L. (2013), Preserving Socioemotional Wealth in Family Firms: Asset or Liability? The Moderating Role of Business Context. Entrepreneurship Theory and Practice, 37: 1341–1360. doi: 10.1111/etap.12069
- Issue published online: 6 NOV 2013
- Article first published online: 30 SEP 2013
We ask whether choices aimed at preserving socioemotional wealth (SEW) represent an asset or a liability in family-controlled firms. Specifically, we consider one major SEW-preserving mechanism—having as chief executive officer (CEO) a member of the controlling family—and hypothesize that this choice is (1) an asset in business contexts, such as industrial districts, in which tacit rules and social norms are relatively more important, but (2) a potential liability in contexts like stock exchange markets, where formal regulations and transparency principles take center stage. The results from our empirical analysis confirm these hypotheses.