Massimo G. Colombo is Full Professor of Economics of Technical Change at the Department of Management, Economics and Industrial Engineering, Politecnico di Milano.
Sales and Employment Changes in Entrepreneurial Ventures with Family Ownership: Empirical Evidence from High-Tech Industries
Article first published online: 12 MAR 2014
© 2014 International Council for Small Business
Journal of Small Business Management
Special Issue: Family Firms, Entrepreneurship, and Economic Development
Volume 52, Issue 2, pages 226–245, April 2014
How to Cite
Colombo, M. G., De Massis, A., Piva, E., Rossi-Lamastra, C. and Wright, M. (2014), Sales and Employment Changes in Entrepreneurial Ventures with Family Ownership: Empirical Evidence from High-Tech Industries. Journal of Small Business Management, 52: 226–245. doi: 10.1111/jsbm.12100
- Issue published online: 12 MAR 2014
- Article first published online: 12 MAR 2014
Vol. 52, Issue 4, 829, Article first published online: 23 SEP 2014
We examine the relation between changes in employment and changes in sales for entrepreneurial ventures with and without family ownership. We argue that this positive relation is weaker for entrepreneurial ventures with family ownership. The goal of preserving socio-emotional wealth (SEW) makes indeed these firms more reluctant to hire (fire) employees in correspondence with an increase (decrease) in sales than their counterparts without family ownership. Results on a sample of Italian entrepreneurial ventures in high-tech industries support our arguments. They also show that the strength of the relation depends on the composition of the entrepreneurial team.