Escalation of commitment in private family businesses: The influence of outside board members
Owner–managers of private family businesses are vulnerable to escalation of commitment, which can lead to costly failure. In an effort to help private family businesses reduce such costs and contribute to the resource dependence literature, we extend prior research on escalation of commitment (Staw, 1981). Specifically, we develop a model that examines how outside board members influence the antecedents, and moderate the processes, that lead to escalation of commitment. Our work encourages the use of outside board members, insofar as they are likely to help the owner–managers of private family businesses to avoid escalation of commitment.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 3 (2012)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
- Heath, Chip, 1995. "Escalation and De-escalation of Commitment in Response to Sunk Costs: The Role of Budgeting in Mental Accounting," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(1), pages 38-54, April.
- McCarthy, Anne M. & Schoorman, F. David & Cooper, Arnold C., 1993. "Reinvestment decisions by entrepreneurs: Rational decision-making or escalation of commitment?," Journal of Business Venturing, Elsevier, vol. 8(1), pages 9-24, January.
- Tan, Hun-Tong & Yates, J. Frank, 2002. "Financial Budgets and Escalation Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 87(2), pages 300-322, March.
- Schulze, William S. & Lubatkin, Michael H. & Dino, Richard N., 2003. "Toward a theory of agency and altruism in family firms," Journal of Business Venturing, Elsevier, vol. 18(4), pages 473-490, July.
- Yannick Bammens & Wim Voordeckers & Anita Gils, 2008. "Boards of directors in family firms: a generational perspective," Small Business Economics, Springer, vol. 31(2), pages 163-180, August.
- Amy J. Hillman, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, 03.
- Fried, Vance H. & Bruton, Garry D. & Hisrich, Robert D., 1998. "Strategy and the board of directors in venture capital-backed firms," Journal of Business Venturing, Elsevier, vol. 13(6), pages 493-503, November.
- Gersick, Connie J. G. & Hackman, J. Richard, 1990. "Habitual routines in task-performing groups," Organizational Behavior and Human Decision Processes, Elsevier, vol. 47(1), pages 65-97, October.
- Danny Miller & Isabelle Le Breton-Miller & Barry Scholnick, 2008. "Stewardship vs. Stagnation: An Empirical Comparison of Small Family and Non-Family Businesses," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 51-78, 01.
- Giessner, Steffen R. & van Knippenberg, Daan, 2008. ""License to Fail": Goal definition, leader group prototypicality, and perceptions of leadership effectiveness after leader failure," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(1), pages 14-35, January.
- Cooper, Arnold C. & Woo, Carolyn Y. & Dunkelberg, William C., 1988. "Entrepreneurs' perceived chances for success," Journal of Business Venturing, Elsevier, vol. 3(2), pages 97-108.
- Jaskiewicz, Peter & Klein, Sabine, 2007. "The impact of goal alignment on board composition and board size in family businesses," Journal of Business Research, Elsevier, vol. 60(10), pages 1080-1089, October.
- Sivanathan, Niro & Molden, Daniel C. & Galinsky, Adam D. & Ku, Gillian, 2008. "The promise and peril of self-affirmation in de-escalation of commitment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 107(1), pages 1-14, September.
- Pieper, Torsten M., 2010. "Non solus: Toward a psychology of family business," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 26-39, March.
- Jeroen van den Heuvel & Anita Van Gils & Wim Voordeckers, 2006. "Board Roles in Small and Medium-Sized Family Businesses: performance and importance," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(5), pages 467-485, 09.
- Mullins, John W. & Forlani, David, 2005. "Missing the boat or sinking the boat: a study of new venture decision making," Journal of Business Venturing, Elsevier, vol. 20(1), pages 47-69, January.
- Pugliese, A. & Bezemer, P.J. & Zattoni, A. & Huse, M. & van den Bosch, F.A.J. & Volberda, H.W., 2009. "Boards of Directors’ Contribution to Strategy: A Literature Review and Research Agenda," ERIM Report Series Research in Management ERS-2009-013-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Whyte, Glen, 1993. "Escalating Commitment in Individual and Group Decision Making: A Prospect Theory Approach," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(3), pages 430-455, April.
- Arosa, Blanca & Iturralde, Txomin & Maseda, Amaia, 2010. "Outsiders on the board of directors and firm performance: Evidence from Spanish non-listed family firms," Journal of Family Business Strategy, Elsevier, vol. 1(4), pages 236-245, December.
- DeTienne, Dawn R. & Shepherd, Dean A. & De Castro, Julio O., 2008. "The fallacy of "only the strong survive": The effects of extrinsic motivation on the persistence decisions for under-performing firms," Journal of Business Venturing, Elsevier, vol. 23(5), pages 528-546, September.
When requesting a correction, please mention this item's handle: RePEc:eee:fambus:v:3:y:2012:i:1:p:18-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.