Inter-generational socio-emotional wealth and succession in family firms during adversity

Publication Type

Conference Proceeding Article

Publication Date

8-2022

Abstract

Despite research underscoring socio-emotional wealth as a core consideration in decision making among family firms, results on whether such considerations affect leadership succession during periods of adversity such as crises remained mixed. Our qualitative interviews of 20 family firms during the COVID-19 pandemic reveal that such mixed findings can be attributed to the insufficient attention paid to the heterogeneity of SEW priorities and concerns among family members within the firm. Because of the gap in SEW priorities, leadership succession can be challenging. We find that whereas the older generation of family members have implicit plans for succession, the young-er generation of family managers and employees engage in strategic communications to gain the trust of the older generation. Moreover, that the adversity of the COVID-19 pandemic could either facilitate the alignment or exacerbation of the differences of SEW priorities between the older and younger generation. Our grounded model presents a more nuanced understanding of how SEW priorities affect succession planning in family firms during times of adversity.

Discipline

Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Organisational Behaviour and Human Resources; Strategy and Organisation

Publication

Proceedings of the 2022 Academy of Management Annual Meeting, Seattle, United States, August 4-11

Volume

2022

Identifier

10.5465/AMBPP.2022.10580abstract

Publisher

Academy of Management

City or Country

New York

Additional URL

https://doi.org/10.5465/AMBPP.2022.10580abstract

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