Psychological contract and social exchange in family firms

Timothy M. Madden, Laura T. Madden, Jason A. Strickling and Kimberly A. Eddleston

International Journal of Management and Enterprise Development, 2017, vol. 16, issue 1/2, 109-127

Abstract: This study tests a social exchange theory model that links firm family members' transactional and relational psychological contract obligations to firm performance. Evidence supports the hypotheses that organisational obligations are antecedents of individual contributions to firm performance in the psychological contract model. When family firms meet the employees' perceived obligations to their employees, the employees meet their perceived obligations to their employers. Participative decision-making and succession planning are of particular importance to maintain transgenerational control and evidence is found to support succession planning as fully mediating the relationship between participative decision-making and firm performance.

Keywords: family firms; family business; participative decision making; psychological contract; social exchange theory; succession planning; firm performance; perceived obligations; transgenerational control. (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmede:v:16:y:2017:i:1/2:p:109-127

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