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Explaining Performance Differences between Family Firms with Family and Nonfamily CEOs: It's the Nature of the Tie to the Family that Counts!

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  • Peter Jaskiewicz
  • Andrew A. Luchak

Abstract

Drawing on regulatory focus theory, we advance a microtheory for Naldi, Cennamo, Corbetta, and Gómez–Mejía's findings suggesting that family ties as well as the career aspirations that derive from them trigger relatively higher prevention and relatively lower promotion goal orientations of family when compared with nonfamily chief executive officers (CEOs). Our conceptualization offers an alternative theory for why family firms with family CEOs outperform those with nonfamily CEOs in contexts such as industrial districts where conservation strategies are more valuable, but underperform in contexts such as publicly listed firms where market–driven strategies are more valuable. Our commentary highlights the need for future research to examine variance in the self–regulatory mindsets of family and nonfamily CEOs, and to link these differences to firm strategies and performance.

Suggested Citation

  • Peter Jaskiewicz & Andrew A. Luchak, 2013. "Explaining Performance Differences between Family Firms with Family and Nonfamily CEOs: It's the Nature of the Tie to the Family that Counts!," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1361-1367, November.
    • Handle: RePEc:sae:entthe:v:37:y:2013:i:6:p:1361-1367
    DOI: 10.1111/etap.12070
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    References listed on IDEAS

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    1. Isabelle Le Breton-Miller & Danny Miller & Richard H. Lester, 2011. "Stewardship or Agency? A Social Embeddedness Reconciliation of Conduct and Performance in Public Family Businesses," Organization Science, INFORMS, vol. 22(3), pages 704-721, June.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Lucia Naldi & Carmelo Cennamo & Guido Corbetta & Luis Gomez–Mejia, 2013. "Preserving Socioemotional Wealth in Family Firms: Asset or Liability? The Moderating Role of Business Context," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1341-1360, November.
    4. Brockner, Joel & Higgins, E. Tory & Low, Murray B., 2004. "Regulatory focus theory and the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 19(2), pages 203-220, March.
    5. Danny Miller & Isabelle Le Breton‐Miller & Richard H. Lester, 2011. "Family and Lone Founder Ownership and Strategic Behaviour: Social Context, Identity, and Institutional Logics," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 1-25, January.
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    1. Inés Herrero & Cristina López & Rocío Ruiz‐Benítez, 2024. "So … are family firms more sustainable? On the economic, social and environmental sustainability of family SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4252-4270, July.
    2. Daniela Gimenez-Jimenez & Linda F. Edelman & Tommaso Minola & Andrea Calabrò & Lucio Cassia, 2021. "An Intergeneration Solidarity Perspective on Succession Intentions in Family Firms," Entrepreneurship Theory and Practice, , vol. 45(4), pages 740-766, July.
    3. W. Robert Knechel & Justin Leiby, 2016. "If You Want My Advice: Status Motives and Audit Consultations About Accounting Estimates," Journal of Accounting Research, Wiley Blackwell, vol. 54(5), pages 1331-1364, December.
    4. James J. Chrisman & Pramodita Sharma & Lloyd P. Steier & Jess H. Chua, 2013. "The Influence of Family Goals, Governance, and Resources on Firm Outcomes," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1249-1261, November.
    5. Martin R.W. Hiebl & Zhen Li, 2020. "Non-family managers in family firms: review, integrative framework and future research agenda," Review of Managerial Science, Springer, vol. 14(4), pages 763-807, August.
    6. Chitra Singla & Ludvig Levasseur, 2023. "The role of family in unfolding the process of external corporate venturing in small family businesses," Small Business Economics, Springer, vol. 61(1), pages 105-126, June.
    7. Magdy Noguera & Erick Paulo Cesar Chang, 2014. "Socio Emotional Wealth Preservation in the REIT Industry: An Exploratory Study," IJFS, MDPI, vol. 2(3), pages 1-20, July.
    8. Basco, Rodrigo, 2015. "Family business and regional development—A theoretical model of regional familiness," Journal of Family Business Strategy, Elsevier, vol. 6(4), pages 259-271.
    9. Briano-Turrent, Guadalupe D.C. & Li, Mingsheng & Peng, Hongfeng, 2020. "The impact of family-CEOs and their demographic characteristics on dividend payouts: Evidence from Latin America," Research in International Business and Finance, Elsevier, vol. 51(C).
    10. Waldkirch, Matthias, 2020. "Non-family CEOs in family firms: Spotting gaps and challenging assumptions for a future research agenda," Journal of Family Business Strategy, Elsevier, vol. 11(1).
    11. Crick, James M. & Crick, Dave, 2021. "Coopetition and family-owned wine producers," Journal of Business Research, Elsevier, vol. 135(C), pages 319-336.
    12. Vazquez, Pedro & Rocha, Héctor, 2018. "On the goals of family firms: A review and integration," Journal of Family Business Strategy, Elsevier, vol. 9(2), pages 94-106.
    13. Czakon, Wojciech & Hajdas, Monika & Radomska, Joanna, 2023. "Playing the wild cards: Antecedents of family firm resilience," Journal of Family Business Strategy, Elsevier, vol. 14(1).

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