Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective

Salvatore Sciascia, Pietro Mazzola and Franz Kellermanns

Journal of Family Business Strategy, 2014, vol. 5, issue 2, 131-137

Abstract: Prior research has not fully explained whether the relationship between family management and profitability is positive or negative in private family firms. This issue is critical for further theoretical development in the field and holds high practical relevance, given that the appointment or exclusion of family managers is a decision virtually any family firm is faced with. To explain inconsistencies in the literature, we build on the socioemotional wealth perspective to argue that family management is positively related to profitability at later generational stages, when a decreased need for socioemotional wealth preservation induces family managers to focus more on increasing financial wealth. We tested and confirmed our hypothesis via OLS regression on a data set of 233 Italian family-owned firms utilizing lagged data on profitability.

Keywords: Family management; Profitability; Socioemotional wealth; Generational stage (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (72)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S187785851400028X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:fambus:v:5:y:2014:i:2:p:131-137

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/bibliographic
http://www.elsevier. ... 719791/bibliographic

DOI: 10.1016/j.jfbs.2014.03.001

Access Statistics for this article

Journal of Family Business Strategy is currently edited by J.H. Astrachan

More articles in Journal of Family Business Strategy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().