Value creation in privately held family businesses: The moderating role of socioemotional wealth

2019 ◽  
Vol 37 (3) ◽  
pp. 283-299 ◽  
Author(s):  
María J. Martínez‐Romero ◽  
Alfonso A. Rojo‐Ramírez ◽  
María del Pilar Casado‐Belmonte
Keyword(s):  
Value Creation ◽  
Family Businesses ◽  
Socioemotional Wealth ◽  
Moderating Role ◽  
Privately Held

scholarly journals Sustaining the Family Business through Open Innovation: The Role of Technological Acquisitions in Shareholder Value Creation

2020 ◽  
Vol 12 (18) ◽  
pp. 7819
Author(s):  
He Soung Ahn
Keyword(s):  
Value Creation ◽  
Open Innovation ◽  
Shareholder Value ◽  
Strong Support ◽  
Shareholder Wealth ◽  
Family Businesses ◽  
Market Participants ◽  
The Family ◽  
Study Methodology

Although technological acquisitions have attracted much attention as a prominent means of open innovation that allows firms to complement internal innovation, their shareholder value creation effects should be influenced by whether the acquiring family businesses can successfully realize technological synergies. Thus, the purpose of this paper is to investigate whether market participants perceive family businesses to create more value when undertaking technological acquisitions. Using a sample of 614 acquisitions by 71 family businesses between 2000 and 2014 in South Korea, an event study methodology is adopted. Empirical analysis yields strong support for the prediction that the stock market does not perceive family businesses to be able to create superior synergy through technological acquisitions compared to when they undertake nontechnological acquisitions. The competitive landscape also has implications for the shareholder value creation effects of technological acquisitions by family businesses. Overall, the findings of this paper provide insight into the shareholder wealth implications of technological acquisitions undertaken by family businesses.

The Effect of Organizational Characteristics on the Appointment of Nonfamily Managers in Private Family Firms

2014 ◽  
Vol 28 (2) ◽  
pp. 104-122 ◽  
Author(s):  
Pieter Vandekerkhof ◽  
Tensie Steijvers ◽  
Walter Hendriks ◽  
Wim Voordeckers
Keyword(s):  
Firm Size ◽  
Family Firms ◽  
Organizational Characteristics ◽  
Socioemotional Wealth ◽  
Firm Innovativeness ◽  
Firm Internationalization ◽  
Positive Effect ◽  
Moderating Role

This article examines the effect of organizational characteristics (firm innovativeness, firm internationalization, firm size) on the appointment of nonfamily managers in private family firms while taking into account the moderating role of socioemotional wealth (SEW). While these organizational characteristics increase the need for expertise, family firms cope with a limited pool of family managers. Therefore, new creative knowledge from nonfamily managers is needed. However, results from a sample of 145 Belgian family firms indicate that the positive effect of organizational characteristics on the integration of nonfamily managers decreases when family-related objectives reflected by SEW become more important for the firm.

Socioemotional wealth (SEW) as the driver of business performance in family businesses in Bosnia and Herzegovina: the mediating role of transformational leadership

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ramo Palalić ◽  
Hamza Smajić
Keyword(s):  
Bosnia And Herzegovina ◽  
Business Performance ◽  
Theoretical Perspective ◽  
Structured Interview ◽  
Family Businesses ◽  
Socioemotional Wealth ◽  
Organizational Governance ◽  
Content Type ◽  
Positive Leadership

PurposeThe aim of this study is to investigate a mediation role of leadership over business performance and socioemotional wealth, within two Bosnian family businesses. This research purpose brings interesting highlights regarding how family businesses embedded the role of leadership that it might have a tremendous influence on business performance while tuning the socioemotional wealth.Design/methodology/approachThis study is based on qualitative research methodology. The sample is collected based on a purposive sampling method as in most qualitative studies. As the instrument for data collection is concerned, in-person-semi-structured interview has been employed with the owner-manager of each particular-family firm. Thus, two case studies were conducted and analyzed.FindingsThe research contributes both to the theory and the practice. From the theoretical perspective, it contributes to the theoretical knowledge of leadership as an important role in relationship between the socioemotional wealth and business performance. The practical contribution of this research could be summed up in the sense that business owners should seek to employ positive leadership vibes to create a good socioemotional wealth so that would be positively reflected in overall business performance of a family business. Other findings are further discussed.Originality/valueScarce empirical research offers mixed results while theoretical propositions that organizational governance (leadership) plays an important role in this relationship, is somehow neglected. Hence, this is the first empirical study on this particular that investigates this topic in Bosnia and Herzegovina (BiH), even in the Balkan region.

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