 The Choice Between Wholly Owned Subsidiaries and Joint Ventures Within Family Firms: A Theoretical Investigation from the Socioemotional Wealth PerspectiveClaudia Pongelli ()
Chapter Chapter 3 in Family Firms into International Markets, 2022, pp 35-54 from Springer Abstract: Abstract Recent applications of behavioral theories into the context of family-controlled firms assert a preference of family decision-makers for strategic actions that allow them Socioemotional Wealth (SEW) preservation, which ultimately means avoiding losing control of the firm. This chapter theoretically investigates how family control loss aversion drives family leaders’ entry mode decisions and, more specifically, the choice between settling a wholly-owned subsidiary and a joint venture in the foreign country. The conceptual argumentation proposed suggests that that family leaders are either more or less willing to preserve family control—entering the foreign market through a wholly-owned subsidiary—depending on whether the firm is exposed to low or high performance and emotional hazards as well as high cultural distance between the domestic and the foreign country. Keywords: Family firms; Socioemotional wealth; Joint ventures; Wholly-owned subsidiaries; Cultural distance (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-05398-6_3 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-05398-6_3 Access Statistics for this chapter More chapters in Springer Books from Springer |
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