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Exploring family business decline with socioemotional wealth perspective

Exploring family business decline with socioemotional wealth perspective The purpose of this paper is to determine how family and business priorities influence organisational decline and turnaround in a family business.Design/methodology/approachFollowing critical realism as philosophical orientation, this research is based on an exploratory single case study.FindingsThis research identified specific socioemotional wealth priorities driving this organisation decline and turnaround. The study also determined how the family and business dynamic leads to decisions that first trigger the organisational decline and then explain the successful implementation of turnaround strategies.Research limitation/implicationsFindings of this research provide limited and contingent theoretical generalisation. Accordingly, replication and further quantitative research is required for a better understanding of this phenomenon.Practical implicationsManagers can benefit from this paper by noting which behaviour could lead to organisational decline and which factors could lead to a turnaround. Similarly, managers can learn about the importance of the alignment of socioemotional wealth priorities as a critical response factor to determine whether to follow exit strategies or turnaround (succession) actions.Originality valueThe study contributes to the organisational decline literature and family business literature. It advances the understanding of how family businesses should balance family and business priorities to avoid organisational decline and identify strategies successfully implemented for turning around. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

Exploring family business decline with socioemotional wealth perspective

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1012-8255
DOI
10.1108/arla-02-2018-0042
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to determine how family and business priorities influence organisational decline and turnaround in a family business.Design/methodology/approachFollowing critical realism as philosophical orientation, this research is based on an exploratory single case study.FindingsThis research identified specific socioemotional wealth priorities driving this organisation decline and turnaround. The study also determined how the family and business dynamic leads to decisions that first trigger the organisational decline and then explain the successful implementation of turnaround strategies.Research limitation/implicationsFindings of this research provide limited and contingent theoretical generalisation. Accordingly, replication and further quantitative research is required for a better understanding of this phenomenon.Practical implicationsManagers can benefit from this paper by noting which behaviour could lead to organisational decline and which factors could lead to a turnaround. Similarly, managers can learn about the importance of the alignment of socioemotional wealth priorities as a critical response factor to determine whether to follow exit strategies or turnaround (succession) actions.Originality valueThe study contributes to the organisational decline literature and family business literature. It advances the understanding of how family businesses should balance family and business priorities to avoid organisational decline and identify strategies successfully implemented for turning around.

Journal

Academia Revista Latinoamericana de AdministraciónEmerald Publishing

Published: May 23, 2019

Keywords: Small family firm; Case-based research; Organizational decline; Socioemotional wealth perspective; Micro empresa familiar; Investigación basada en caso; Declinación organizacional; Perspectiva de la riqueza socioemocional

References