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We Are Friends but Are We Family? Organizational Identification and Nonfamily Employee Turnover

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  • James M. Vardaman
  • David G. Allen
  • Bryan L. Rogers

Abstract

The family-centric priorities of family firms often disadvantage nonfamily employees and make retaining them problematic. Our study posits organizational identification, or internalizing the firm's identity as one's own, as a key factor in overcoming this challenge. We adopt a social network perspective to examine the differential impact of friendships with family and nonfamily members on nonfamily employees' organizational identification and turnover. Results from a study of the nonfamily employees of a family-owned service company show that centrality in both family and nonfamily friendship networks reduces turnover, but that friendships with family members have a stronger effect. Results also show that various forms of centrality in social networks have indirect effects on turnover through organizational identification, highlighting identification's importance for retaining nonfamily employees.

Suggested Citation

  • James M. Vardaman & David G. Allen & Bryan L. Rogers, 2018. "We Are Friends but Are We Family? Organizational Identification and Nonfamily Employee Turnover," Entrepreneurship Theory and Practice, , vol. 42(2), pages 290-309, March.
    • Handle: RePEc:sae:entthe:v:42:y:2018:i:2:p:290-309
    DOI: 10.1177/1042258717749235
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    References listed on IDEAS

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    Cited by:

    1. Laura E. Marler & Laura J. Stanley, 2018. "Commentary: Who Are Your Friends? The Influence of Identification and Family In-Group and Out-Group Friendships on Nonfamily Employee OCB and Deviance," Entrepreneurship Theory and Practice, , vol. 42(2), pages 310-316, March.
    2. James J. Chrisman & Jess H. Chua & Isabelle Le Breton-Miller & Danny Miller & Lloyd P. Steier, 2018. "Governance Mechanisms and Family Firms," Entrepreneurship Theory and Practice, , vol. 42(2), pages 171-186, March.
    3. Stefano Amato & Rodrigo Basco & Nicola Lattanzi, 2022. "Contextualizing employment outcomes in family business research: current findings and future research avenues," Management Review Quarterly, Springer, vol. 72(2), pages 531-604, June.
    4. Boberg, Pauline S. & Bövers, Jana & Bormann, Kai C. & Hoon, Christina, 2023. "Identity leadership in family businesses: The important role of nonfamily leaders," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    5. Waterwall, Brian & Alipour, Kent K., 2021. "Nonfamily employees’ perceptions of treatment in family businesses: Implications for organizational attraction, job pursuit intentions, work attitudes, and turnover intentions," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    6. Köhn, Philipp & Ruf, Philipp Julian & Moog, Petra, 2023. "Why are non-family employees intrapreneurially active in family firms? A multiple case study," Journal of Family Business Strategy, Elsevier, vol. 14(3).
    7. Mahto, Raj V. & Vora, Gautam & McDowell, William C. & Khanin, Dmitry, 2020. "Family member commitment, the opportunity costs of staying, and turnover intentions," Journal of Business Research, Elsevier, vol. 108(C), pages 9-19.
    8. Reinhard Prügl & Dinah Isabel Spitzley, 2021. "Responding to Digital Transformation by External Corporate Venturing: An Enterprising Family Identity and Communication Patterns Perspective," Journal of Management Studies, Wiley Blackwell, vol. 58(1), pages 135-164, January.
    9. Du, Shanzhong & Ma, Lianfu & Li, Zhuo, 2022. "Non-family shareholder governance and corporate risk-taking: Evidence from Chinese family-controlled businesses," Journal of Business Research, Elsevier, vol. 145(C), pages 156-170.
    10. Meier, Olivier & Schier, Guillaume, 2022. "Lone founders, family founders, and corporate social responsibility," Journal of Business Research, Elsevier, vol. 148(C), pages 149-160.
    11. Pramodita Sharma & James J. Chrisman & Jess H. Chua & Lloyd P. Steier, 2020. "Family Firm Behavior From a Psychological Perspective," Entrepreneurship Theory and Practice, , vol. 44(1), pages 3-19, January.
    12. Giovanna Campopiano & Emanuela Rondi, 2019. "Hierarchical Dyadic Congruence in Family Firms: The Interplay of Supervisor and Supervisee Socioemotional Wealth Importance and Familial Status," Entrepreneurship Theory and Practice, , vol. 43(2), pages 322-329, March.
    13. Victoria Antin Yates & James M. Vardaman & James J. Chrisman, 2023. "Social network research in the family business literature: a review and integration," Small Business Economics, Springer, vol. 60(4), pages 1323-1345, April.
    14. Hanna Maria Sievinen & Tuuli Ikäheimonen & Timo Pihkala, 2022. "The role of dyadic interactions between CEOs, chairs and owners in family firm governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(1), pages 223-253, March.

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