How Much Am I Expected to Pay for My Parents' Firm? An Institutional Logics Perspective on Family Discounts

Entrepreneurship: Theory and Practice

Volumn 40, Issue 5, 2016, Pages 1041-1069

  Zellweger, Thomas ^a   Richards, Melanie ^a   Sieger, Philipp ^a   Patel, Pankaj C ^b  

^a UNIVERSITY OF ST GALLEN   (Switzerland)

^b BALL STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84991064884     PISSN: 10422587     EISSN: 15406520     Source Type: Journal    
DOI: 10.1111/etap.12161     Document Type: Article

References (133)

1. Aguinis, H., Beaty, J.C., Boik, R.J., & Pierce, C.A. (2005). Effect size and power in assessing moderating effects of categorical variables using multiple regression: A 30-year review. Journal of Applied Psychology, 90(1), 94–107.
2. Allen, N.J. & Meyer, J.P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1–18.
3. Almandoz, J. (2012). Arriving at the starting line: The impact of community and financial logics on new banking ventures. Academy of Management Journal, 55(6), 1381–1406.
4. Anderson, R.C. & Reeb, D.M. (2003). Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58(3), 1301–1328.
5. Astrachan, J.H., Klein, S.B., & Smyrnios, K.X. (2002). The F-PEC scale of family influence: A proposal for solving the family business definition problem. Family Business Review, 15(1), 45–58.
6. Autio, E., Pathak, S., & Wennberg, K. (2013). Consequences of cultural practices for entrepreneurial behaviors. Journal of International Business Studies, 44(4), 334–362.
7. Bargh, J.A. & Chartrand, T.L. (1999). The unbearable automaticity of being. American Psychologist, 54(7), 462–479.
8. Barkema, H.G. & Schijven, M. (2008). Toward unlocking the full potential of acquisitions: The role of organizational restructuring. Academy of Management Journal, 51(4), 696–722.
9. Baum, C.F., Schaffer, M.E., & Stillman, S. (2007). IVENDOG: Stata module to calculate Durbin-Wu-Hausman endogeneity test after ivreg. Boston College Department of Economics. Available at https://ideas.repec.org/c/boc/bocode/s429401.html, accessed 29 September 2013.
10. Becker, E. (1997). The denial of death. New York: Simon and Schuster.
11. Becker, G.S. (1981). Altruism in the family and selfishness in the market place. Economica, 48(189), 1–15.
12. Becker, G.S. (1988). Family economics and macro behavior. The American Economic Review, 78(1), 1–13.
13. Beckert, J. (2011). Where do prices come from? Sociological approaches to price formation. Socio-Economic Review, 9(4), 757–786.
14. Bengtson, V.L. (1993). Is the “contract across generations” changing? Effects of population aging on obligations and expectations across age groups. In V.L. Bengtson & A.W. Achenbaum (Eds.), The changing contract across generations (pp. 3–23). New York: Walter de Gruyter.
15. Berk, R.A. (1983). An introduction to sample selection bias in sociological data. American Sociological Review, 48(3), 386–398.
16. Bertrand, M., Johnson, S., Samphantharak, K., & Schoar, A. (2008). Mixing family with business: A study of Thai business groups and the families behind them. Journal of Financial Economics, 88(3), 466–498.
17. Bourdieu, P. (1990). The logic of practice. Chicago, IL: Stanford University Press.
18. Carter, N.M., Garnter, W., Shaver, K.G., & Gatewood, E.J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18(1), 13–39.
19. Chen, C.C., Greene, P.G., & Crick, A. (1998). Does entrepreneurial self-efficacy distinguish entrepreneurs from managers? Journal of Business Venturing, 13(4), 295–316.
20. Chrisman, J.J., Chua, J.H., & Litz, R.A. (2004). Comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice, 28(4), 335–354.
21. Chrisman, J.J., Chua, J.H., Pearson, A.W., & Barnett, T. (2012). Family involvement, family influence, and family-centered non-economic goals in small firms. Entrepreneurship Theory and Practice, 36(2), 267–293.
22. Christen, A., Halter, F., Kammerlander, N., Künzi, D., Merki, M., & Zellweger, T. (2013). Success factors for Swiss SMES: Company succession in practice. Zürich, Switzerland: Credit Suisse.
23. Chua, J.H., Chrisman, J.J., & Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship Theory and Practice, 23(4), 19–39.
24. Churchill, N.C. & Hatten, K.J. (1997). Non-market-based transfers of wealth and power: A research framework for family business. Family Business Review, 10(1), 53–67.
25. Cohen, J. (1988). Statistical power analysis for behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates.
26. Corbetta, G. & Salvato, C. (2004). Self-serving or self-actualizing? Models of man and agency costs in different types of family firms: A commentary on “comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence.” Entrepreneurship Theory and Practice, 28(4), 355–362.
27. Cucculelli, M. & Micucci, G. (2008). Family succession and firm performance: Evidence from Italian family firms. Journal of Corporate Finance, 14(1), 17–31.
28. Daatland, S.O. & Herlofson, K. (2003). “Lost solidarity” or “changed solidarity”: A comparative European view of normative family solidarity. Ageing and Society, 23(5), 537–560.
29. De Massis, A., Chua, J.H., & Chrisman, J.J. (2008). Factors preventing intra-family succession. Family Business Review, 21(2), 183–199.
30. De Massis, A., Kotlar, J., Chua, J.H., & Chrisman, J.J. (2014). Ability and willingness as sufficiency conditions for family-oriented particularistic behavior: Implications for theory and empirical studies. Journal of Small Business Management, 52(2), 344–364.
31. Dehlen, T., Zellweger, T., Kammerlander, N., & Halter, F. (2014). The role of information asymmetry in the choice of entrepreneurial exit routes. Journal of Business Venturing, 29(2), 193–209.
32. Dess, G.G. & Robinson, R.B. (1984). Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5(4), 265–273.
33. DeTienne, D.R. & Cardon, M.S. (2012). Impact of founder experience on exit intentions. Small Business Economics, 38(4), 351–374.
34. DeTienne, D.R. & Chirico, F. (2013). Exit strategies in family firms: How socioemotional wealth drives the threshold of performance. Entrepreneurship Theory and Practice, 37, 1297–1318.
35. DiMaggio, P.J. & Powell, W.W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
36. Durkheim, E. (1947). The division of labor in society. New York: Simon and Schuster.
37. Eddleston, K.A. & Kellermanns, F.W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22(4), 545–565.
38. Eddleston, K.A., Kellermanns, F.W., Floyd, S.W., Crittenden, V.L., & Crittenden, W.F. (2013). Planning for growth: Life stage differences in family firms. Entrepreneurship Theory and Practice, 37(5), 1177–1202.
39. Eddleston, K.A., Kellermanns, F.W., & Sarathy, R. (2008). Resource configuration in family firms: Linking resources, strategic planning and technological opportunities to performance. Journal of Management Studies, 45(1), 26–50.
40. Ellul, A., Pagano, M., & Panunzi, F. (2010). Inheritance law and investment in family firms. The American Economic Review, 100(5), 2414–2450.
41. Eshel, I., Samuelson, L., & Shaked, A. (1998). Altruists, egoists, and hooligans in a local interaction model. American Economic Review, 88(1), 157–179.
42. Fairclough, S. & Micelotta, E.R. (2013). Beyond the family firm: Reasserting the influence of the family institutional logic across organizations. In M. Lounsbury & E. Boxenbaum (Eds.), Research in the sociology of organizations (Vol. 39, pp. 63–98). Bingley, U.K.: Emerald.
43. Ferguson, C.J. (2009). An effect size primer: A guide for clinicians and researchers. Professional Psychology: Research and Practice, 40(5), 532–538.
44. Fiske, S.T. & Taylor, S.E. (2013). Social cognition: From brains to culture (2nd ed.). Thousand Oaks, CA: Sage Publications.
45. Friedland, R. & Alford, R.R. (1991). Bringing society back in: Symbols, practices and institutional contradictions. In W.W. Powell & P.J. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 232–263). Chicago, IL: University of Chicago Press.
46. Friedman, M. (1970). A theoretical framework for monetary analysis. Journal of Political Economy, 78(2), 193–238.
47. Fueglistaller, U., Klandt, H., Halter, F., & Mueller, C. (2009). An international comparision of entreneurship among students. International report of the Global University Entrepreneurial Spirit Students' Survey (GUESSS 2008). St. Gallen, Switzerland: KMU-HSG/EBS.
48. Gans, D. & Silverstein, M. (2006). Norms of filial responsibility for aging parents across time and generations. Journal of Marriage and Family, 68(4), 961–976.
49. Goldberg, S.D. & Wooldridge, B. (2004). Self-confidence and managerial autonomy: Successor characteristics critical to succession in family firms. Family Business Review, 6(1), 55–73.
50. Gouldner, A. (1960). The norm of reciprocity. American Sociological Review, 25(2), 161–178.
51. Graebner, M.E. & Eisenhardt, K.M. (2004). The seller's side of the story: Acquisition as courtship and governance as syndicate in entrepreneurial firms. Administrative Science Quarterly, 49(3), 366–403.
52. Granata, D. & Chirico, F. (2010). Measures of value in acquisitions: Family versus nonfamily firms. Family Business Review, 23(4), 341–354.
53. Granovetter, M.S. & Swedberg, R. (2001). The sociology of economic life, Vol. 3. Boulder, CO: Westview Press.
54. Greenberg, J., Solomon, S., & Pyszczynski, T. (1997). Terror management theory of self-esteem and cultural worldviews: Empirical assessments and conceptual refinements. Advances in Experimental Social Psychology, 29, 61–139.
55. Greenwood, R., Díaz, A.M., Li, S.X., & Lorente, J.C. (2010). The multiplicity of institutional logics and the heterogeneity of organizational responses. Organization Science, 21(2), 521–539.
56. Greenwood, R. & Hinings, C.R. (1996). Understanding radical organizational change: Bringing together the old and the new instiutionalism. Academy of Management Review, 21(4), 1022–1054.
57. Greenwood, R., Raynard, M., Kodeih, F., Micelotta, E.R., & Lounsbury, M. (2011). Institutional complexity and organizational responses. The Academy of Management Annals, 5(1), 317–371.
58. Grichnik, D., Brinckmann, J., Singh, L., & Manigart, S. (2014). Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities. Journal of Business Venturing, 29(2), 310–326.
59. Hair, J.F., Black, W.C., Babin, B.Y.A., Anderson, R.E., & Tatham, R.L. (2010). Multivariate data analysis. A global perspective. Englewood, NJ: Pearson Prentice Hall.
60. Handler, W.C. (1989). Methodological issues and considerations in studying family businesses. Family Business Review, 2(3), 257–276.
61. Harman, H.H. (1967). Modern factor analysis. Chicago, IL: University of Chicago Press.
62. Heckman, J.J. (1979). Sample selection bias as a specification error. Econometrica, 47(1), 153–161.
63. Hinkin, T.R. (1995). A review of scale development practices in the study of organizations. Journal of Management, 21(5), 967–988.
64. House, R.J., Hanges, P.J., Javidan, M., Dorfman, P.W., & Gupta, V. (2004). Culture, leadership, and organizations: The GLOBE Study of 62 societies. London: Sage.
65. Hwang, K.K. (1999). Filial piety and loyalty: Two types of social identification in confucianism. Asian Journal of Social Psychology, 2(1), 163–183.
66. Janjuha-Jivraj, S. & Spence, L.J. (2009). The nature of reciprocity in family firm succession. International Small Business Journal, 27(6), 702–719.
67. Johnson, H.D., Lavoie, J.C., & Mahoney, M. (2001). Interparental conflict and family cohesion predictors of loneliness, social anxiety, and social avoidance in late adolescence. Journal of Adolescent Research, 16(3), 304–318.
68. Kammerlander, N. (2014). “I want this firm to be in good hands”: Emotional pricing of resigning entrepreneurs. International Small Business Journal, 2014, 1–40.
69. Karra, N., Tracey, P., & Phillips, N. (2006). Altruism and agency in the family firm: Exploring the role of family, kinship, and ethnicity. Entrepreneurship Theory and Practice, 30(6), 861–877.
70. Kellermanns, F.W. & Eddleston, K.A. (2004). Feuding families: When conflict does a family firm good. Entrepreneurship Theory and Practice, 28(3), 209–228.
71. Kennedy, P. (2008). A guide to econometrics. Hoboken, NJ: Wiley-Blackwell.
72. Kepner, C.G. (1991). An experiment in the relationship of types of written feedback to the development of second-language writing skills. The Modern Language Journal, 75(3), 305–313.
73. Kim, P.H., Aldrich, H.E., & Keister, L.A. (2006). Access (not) denied: The impact of financial, human, and cultural capital on entrepreneurial entry in the United States. Small Business Economics, 27(1), 5–22.
74. Klyver, K. (2007). Shifting family involvement during the entrepreneurial process. International Journal of Entrepreneurial Behaviour & Research, 13(5), 258–277.
75. Kohli, M. & Kuenemund, H. (2003). Intergenerational transfers in the family: What motivates giving? In V.L. Bengtson & A. Lowenstein (Eds.), Global aging and challenges to families (pp. 123–142). New York: Aldine de Gruyter.
76. KPMG. (2014). European family business tax monitor. KPMG International. Available at http://www.kpmgfamilybusiness.com/wp-content/uploads/2014/05/EFB-KPMG-European-Family-Business-Tax-Barometer.pdf, accessed 20 July 2014.
77. Kumar, N., Stern, L.W., & Anderson, J.C. (1993). Conducting interorganizational research using key informants. Academy of Management Journal, 36(6), 1633–1651.
78. Langowitz, N. & Minniti, M. (2007). The entrepreneurial propensity of women. Entrepreneurship Theory and Practice, 31(3), 341–364.
79. Lansberg, I. & Astrachan, J.H. (1994). Influence of family relationships on succession planning and training: The importance of mediating factors. Family Business Review, 7(1), 39–59.
80. Laspita, S., Breugst, N., Heblich, S., & Patzelt, H. (2012). Intergenerational transmission of entrepreneurial intentions. Journal of Business Venturing, 27(4), 414–435.
81. Lattin, J.M., Carroll, J.D., & Green, P.E. (2003). Analyzing multivariate data. Cole Pacific Grove, CA: Thomson Brooks.
82. Le Breton-Miller, I., Miller, D., & Steier, L.P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305–328.
83. Lee, G.R., Peek, C.W., & Coward, R.T. (1998). Race differences in filial responsibility expectations among older parents. Journal of Marriage and the Family, 60(2), 404–412.
84. Lee, J. (2006). Family firm performance: Further evidence. Family Business Review, 19(2), 103–114.
85. Lee, L., Wong, P.K., Foo, M.D., & Leung, A. (2011). Entrepreneurial intentions: The influence of organizational and individual factors. Journal of Business Venturing, 26(1), 124–136.
86. Lima, E., Lopes, R.A., Nassif, V.M.J., & Silva, D. (2014). Opportunities to improve entrepreneurship education: Contributions considering Brazilian challenges. Journal of Small Business Management, doi:10.1111/jsbm.12110.
87. Ling, Y., Lubatkin, M., & Schulze, M. (2002). Altruism, utility functions and agency problems at family firm. In C.S. Galbraith (Ed.), Strategies and organizations in transition, (Vol. 3, pp. 171–188). Kidlington, U.K.: Elsevier Science Ltd.
88. MacKenzie, D. & Millo, Y. (2003). Constructing a market, performing theory: The historical sociology of a financial derivatives exchange. American Journal of Sociology, 109(1), 107–145.
89. Manigart, S., De Waele, K., Wright, M., Robbie, K., Desbrieres, P., Sapienza, H.J., et al. (2002). Determinants of required return in venture capital investments: A five-country study. Journal of Business Venturing, 17(4), 291–312.
90. Matthews, S.H. & Rosner, T.T. (1988). Shared filial responsibility: The family as the primary caregiver. Journal of Marriage and the Family, 50(1), 185–195.
91. McAdams, D.P. & de St Aubin, E. (1992). A theory of generativity and its assessment through self-report, behavioral acts, and narrative themes in autobiography. Journal of Personality and Social Psychology, 62(6), 1003–1015.
92. Miller, D., Le Breton-Miller, I., & Lester, R.H. (2011). Family and lone founder ownership and strategic behaviour: Social context, identity, and institutional logics. Journal of Management Studies, 48(1), 1–25.
93. Mueller, S.L. & Thomas, A.S. (2001). Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of Business Venturing, 16(1), 51–75.
94. Norman, P.M., Butler, F.C., & Ranft, A.L. (2013). Resources matter: Examining the effects of resources on the state of firms following downsizing. Journal of Management, 39(7), 2009–2038.
95. Ocasio, W. (2011). Attention to attention. Organization Science, 22(5), 1286–1296.
96. Olson, D.H. (1986). Circumplex model VII: Validation studies and FACES III. Family Process, 25(3), 337–351.
97. Olson, D.H. (1991). Commentary: Three-dimensional (3-D) circumplex model and revised scoring of FACES III. Family Process, 30(1), 74–79.
98. Oppenheim, A.N. (1966). Questionnaire design and attitude measurement. New York: The Free Press.
99. Pache, A.C. & Santos, F. (2013). Embedded in hybrid contexts: How individuals in organizations respond to competing institutional logics. Research in the Sociology of Organizations, 39, 3–35.
100. Podsakoff, P.M., MacKenzie, S.B., Lee, J.-Y., & Podsakoff, N.P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.
101. Podsakoff, P.M. & Organ, D.W. (1986). Self-reports in organizational research: Problems and perspectives. Journal of Management, 12(4), 531–544.
102. Porter, S.R. & Whitcomb, M.E. (2003). The impact of lottery incentives on student survey response rates. Research in Higher Education, 44(4), 389–407.
103. Ross, L. & Nisbett, R.E. (1991). The person and the situation: Perspectives of social psychology. New York: Mcgraw-Hill Book Company.
104. Schroeder, E. & Schmitt-Rodermund, E. (2013). Antecedents and consequences of adolescents' motivations to join the family business. Journal of Vocational Behavior, 83(3), 476–485.
105. Schulze, W.S., Lubatkin, M.H., & Dino, R.N. (2002). Altruism, agency, and the competitiveness of family firms. Managerial & Decision Economics, 23(4/5), 247–259.
106. Schulze, W.S., Lubatkin, M.H., Dino, R.N., & Buchholtz, A.K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12(2), 99–116.
107. Scott, W.R. (2007). Institutions and organizations: Ideas and interests. London: Sage.
108. Sharma, P. (2004). An overview of the field of family business studies: Current status and directions for the future. Family Business Review, 17(1), 1–36.
109. Sharma, P., Chrisman, J.J., & Chua, J.H. (2003). Succession planning as planned behavior: Some empirical results. Family Business Review, 16(1), 1–15.
110. Shinnar, R.S., Giacomin, O., & Janssen, F. (2012). Entrepreneurial perceptions and intentions: The role of gender and culture. Entrepreneurship Theory and Practice, 36(3), 465–493.
111. Sieger, P., Fueglistaller, U., & Zellweger, T. (2011). Entrepreneurial intentions and activities of students across the world: International report of GUESSS 2011. St. Gallen, Switzerland: KMU-HSG.
112. Siemsen, E., Roth, A., & Oliveira, P. (2010). Common method bias in regression models with linear, quadratic, and interaction effects. Organizational Research Methods, 13(3), 456–476.
113. Silverstein, M., Bengtson, V.L., & Lawton, L. (1997). Intergenerational solidarity and the structure of adult child-parent relationships in American families. The American Journal of Sociology, 103(2), 429–460.
114. Simon, H.A. (1993). Altruism and economics. The American Economic Review, 82(2), 156–161.
115. Souitaris, V., Zerbinati, S., & Al-Laham, A. (2007). Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning, inspiration and resources. Journal of Business Venturing, 22(4), 566–591.
116. Stavrou, E.T. (1999). Succession in family businesses: Exploring the effects of demographic factors on offspring intentions to join and take over the business. Journal of Small Business Management, 37(3), 43–61.
117. Steier, L. (2003). Variants of agency contracts in family-financed ventures as a continuum of familial altruistic and market rationalities. Journal of Business Venturing, 18(5), 597–618.
118. Suddaby, R. & Greenwood, R. (2005). Rhetorical strategies of legitimacy. Administrative Science Quarterly, 50(1), 35–67.
119. Thompson, E.R. (2009). Individual entrepreneurial intent: Construct clarification and development of an internationally reliable metric. Entrepreneurship Theory and Practice, 33(3), 669–694.
120. Thornton, P.H., Ocasio, W., & Lounsbury, M. (2012). The institutional logics perspective: A new approach to culture, structure, and process. Oxford, U.K.: Oxford University Press.
121. Villalonga, B. & Amit, R. (2006). How do family ownership, control and management affect firm value? Journal of Financial Economics, 80(2), 385–417.
122. Wade-Benzoni, K.A. (2006). Legacies, immortality, and the future: The psychology of intergenerational altruism. Research on Managing Groups and Teams, 8, 247–270.
123. Ward, J.L. (1988). The special role of strategic planning for family businesses. Family Business Review, 1(2), 105–117.
124. Weick, K.E. (1995). Sensemaking in organizations, Vol. 3. Thousand Oaks, CA: Sage Publications.
125. Wennberg, K., Wiklund, J., Hellerstedt, K., & Nordqvist, M. (2011). Implications of intra-family and external ownership transfer of family firms: Short-term and long-term performance differences. Strategic Entrepreneurship Journal, 5(4), 352–372.
126. Wennekers, S., van Stel, A., Thurik, R., & Reynolds, P. (2005). Nascent entrepreneurship and the level of economic development. Small Business Economics, 24(3), 293–309.
127. Wheeler, S.C. & Petty, R.E. (2001). The effects of stereotype activation on behavior: A review of possible mechanisms. Psychological Bulletin, 127(6), 797–826.
128. Wright, M., Hoskisson, R.E., Busenitz, L.W., & Dial, J. (2000). Entrepreneurial growth through privatization: The upside of management buyouts. The Academy of Management Review, 25(3), 591–601.
129. Zahra, S.A. & Sharma, P. (2004). Family business research: A strategic reflection. Family Business Review, 17(4), 331–346.
130. Zellweger, T., Kellermanns, F., Chrisman, J., & Chua, J. (2012). Family control and family firm valuation by family CEOs: The importance of intentions for transgenerational control. Organization Science, 23(3), 851–868.
131. Zellweger, T., Sieger, P., & Halter, F. (2011). Should I stay or should I go? Career choice intentions of students with family business background. Journal of Business Venturing, 26(5), 521–536.
132. Zellweger, T.M. & Astrachan, J.H. (2008). On the emotional value of owning a firm. Family Business Review, 21(4), 347–363.
133. Zellweger, T.M., Nason, R.S., Nordqvist, M., & Brush, C.G. (2013). Why do family firms strive for nonfinancial goals? An organizational identity perspective. Entrepreneurship Theory and Practice, 37(2), 229–248.