Strategic Divestments in Family Firms: Role of Family Structure and Community Culture

Pramodita Sharma and S. Manikutty

Entrepreneurship Theory and Practice, 2005, vol. 29, issue 3, 293-311

Abstract: Timely acquisition and divestment of resources is essential for sustaining the competitive advantage and longevity of family firms. A combination of past successes, emotional attachments, and path dependencies can lead to extensive inertia toward divestment in these firms. This article develops a framework to understand the influence of community culture and family structure on divestment decisions in family firms. Propositions on the varying levels of inertia to divest—depending on the values held by the owning family and the culture prevailing in their community—are developed. Research and practical implications are discussed.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:29:y:2005:i:3:p:293-311

DOI: 10.1111/j.1540-6520.2005.00084.x

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