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Family member commitment, the opportunity costs of staying, and turnover intentions

Author

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  • Mahto, Raj V.
  • Vora, Gautam
  • McDowell, William C.
  • Khanin, Dmitry

Abstract

Building on social identity theory, we develop and test a model of turnover intentions in a family business. We argue that the relationship between family member commitment and turnover intentions could be more complicated than characterized in prior research. Specifically, we assert that the opportunity costs of staying, i.e., the disadvantages of remaining in a family firm and, thus, foregoing superior employment prospects elsewhere, moderate the relationship between family member commitment and turnover intentions. Based on a survey of 111 family member employees, we apply a structural equation modeling (SEM) analysis to examine the model. With some exceptions, we find support for the hypothesized relationships. The practical implications of the study are discussed, and the directions for subsequent research are outlined.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:108:y:2020:i:c:p:9-19
    DOI: 10.1016/j.jbusres.2019.10.013
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    3. Mahto, Raj V. & Llanos-Contreras, Orlando & Hebles, Melany, 2022. "Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities," Journal of Business Research, Elsevier, vol. 145(C), pages 117-129.
    4. 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.
    5. Ferreira, João J. & Fernandes, Cristina I. & Schiavone, Francesco & Mahto, Raj V., 2021. "Sustainability in family business – A bibliometric study and a research agenda," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    6. Kowalik, Elena, 2023. "Ethical Problems in Family Firms," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(2), pages 431-452.
    7. Rossella Leopizzi & Simone Pizzi & Fabrizio D'Addario, 2021. "The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector," Administrative Sciences, MDPI, vol. 11(1), pages 1-12, January.

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