IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v36y2012i6p1153-1173.html
   My bibliography  Save this article

Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family–Controlled Firms Care More about their Stakeholders

Author

Listed:
  • Carmelo Cennamo
  • Pascual Berrone
  • Cristina Cruz
  • Luis R. Gomez–Mejia

Abstract

While family business research has prominently recognized that family firms are motivated by nonfinancial factors, the literature has remained relatively silent about whether or not these firms are more likely than others to engage actively with their stakeholders, who often have nonpecuniary demands. This paper argues that family firms are more prone to adopt proactive stakeholder engagement (PSE) activities because by doing so they preserve and enhance their socioemotional wealth (SEW). We explore the impact of the different dimensions of SEW on PSE and identify distinctive logics that explain the adoption of such practices. Finally, we offer a set of topics for future studies.

Suggested Citation

  • Carmelo Cennamo & Pascual Berrone & Cristina Cruz & Luis R. Gomez–Mejia, 2012. "Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family–Controlled Firms Care More about their Stakeholders," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1153-1173, November.
    • Handle: RePEc:sae:entthe:v:36:y:2012:i:6:p:1153-1173
    DOI: 10.1111/j.1540-6520.2012.00543.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2012.00543.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2012.00543.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cynthia Hardy & Nelson Phillips, 1998. "Strategies of Engagement: Lessons from the Critical Examination of Collaboration and Conflict in an Interorganizational Domain," Organization Science, INFORMS, vol. 9(2), pages 217-230, April.
    2. Acquaah, Moses, 2011. "Utilization and value of social networking relationships in family and nonfamily firms in an African transition economy," European Management Journal, Elsevier, vol. 29(5), pages 347-361.
    3. Eleni Stavrou & George Kassinis & Alexis Filotheou, 2007. "Downsizing and Stakeholder Orientation Among the Fortune 500: Does Family Ownership Matter?," Journal of Business Ethics, Springer, vol. 72(2), pages 149-162, May.
    4. Michael Lubatkin & William S. Schulze & N Dino Richard, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02311676, HAL.
    5. James J. Chrisman & Lloyd P. Steier & Jess H. Chua, 2006. "Personalism, Particularism, and the Competitive Behaviors and Advantages of Family Firms: An Introduction," Entrepreneurship Theory and Practice, , vol. 30(6), pages 719-729, November.
    6. Sharma, Pramodita & Sharma, Sanjay, 2011. "Drivers of Proactive Environmental Strategy in Family Firms," Business Ethics Quarterly, Cambridge University Press, vol. 21(2), pages 309-334, April.
    7. Zellweger, Thomas M. & Eddleston, Kimberly A. & Kellermanns, Franz W., 2010. "Exploring the concept of familiness: Introducing family firm identity," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 54-63, March.
    8. Anderson, Ronald C. & Mansi, Sattar A. & Reeb, David M., 2003. "Founding family ownership and the agency cost of debt," Journal of Financial Economics, Elsevier, vol. 68(2), pages 263-285, May.
    9. Nigel Roome & Frank Wijen, 2006. "Stakeholder power and organizational learning in corporate environmental management," ULB Institutional Repository 2013/14321, ULB -- Universite Libre de Bruxelles.
    10. Jaepil Choi & Heli Wang, 2009. "Stakeholder relations and the persistence of corporate financial performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 895-907, August.
    11. Steen Thomsen & Torben Pedersen, 2000. "Ownership structure and economic performance in the largest european companies," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 689-705, June.
    12. Mattias Nordqvist, 2005. "Familiness in Top Management Teams: Commentary on Ensley and Pearson's “An Exploratory Comparison of the Behavioral Dynamics of Top Management Teams in Family and Nonfamily New Ventures: Cohesion, C," Entrepreneurship Theory and Practice, , vol. 29(3), pages 285-291, May.
    13. Vincent Molly & Eddy Laveren & Ann Jorissen, 2012. "Intergenerational Differences in Family Firms: Impact on Capital Structure and Growth Behavior," Entrepreneurship Theory and Practice, , vol. 36(4), pages 703-725, July.
    14. Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea, 2009. "The impact of symbolic and substantive actions on environmental legitimacy," IESE Research Papers D/778, IESE Business School.
    15. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    16. Graafland, J.J., 2002. "Sourcing ethics in the textile sector: The case of C&A," MPRA Paper 20769, University Library of Munich, Germany.
    17. James J. Chrisman & Jess H. Chua & Pramodita Sharma, 2005. "Trends and Directions in the Development of a Strategic Management Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 29(5), pages 555-575, September.
    18. Eleni T. Stavrou & Paul Michael Swiercz, 1998. "Securing the Future of the Family Enterprise: A Model of Offspring Intentions to Join the Business," Entrepreneurship Theory and Practice, , vol. 23(2), pages 19-40, December.
    19. Michael Lubatkin & William S. Schulze & Richard N. Dino, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02276698, HAL.
    20. Luis R. Gomez‐Mejia & Marianna Makri & Martin Larraza Kintana, 2010. "Diversification Decisions in Family‐Controlled Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 223-252, March.
    21. Morck, Randall & Yeung, Bernard, 2004. "Special issues relating to corporate governance and family control," Policy Research Working Paper Series 3406, The World Bank.
    22. W. Gibb Dyer Jr. & David A. Whetten, 2006. "Family Firms and Social Responsibility: Preliminary Evidence from the S&P 500," Entrepreneurship Theory and Practice, , vol. 30(6), pages 785-802, November.
    23. Jordi Surroca & Josep A. Tribó & Sandra Waddock, 2010. "Corporate responsibility and financial performance: the role of intangible resources," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 463-490, May.
    24. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    25. Jaepil Choi & Heli Wang, 2007. "The Promise of a Managerial Values Approach to Corporate Philanthropy," Journal of Business Ethics, Springer, vol. 75(4), pages 345-359, November.
    26. Jeffrey S. Harrison & Douglas A. Bosse & Robert A. Phillips, 2010. "Managing for stakeholders, stakeholder utility functions, and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 31(1), pages 58-74, January.
    27. Carmelo Cennamo & Pascual Berrone & Luis Gomez-Mejia, 2009. "Does Stakeholder Management have a Dark Side?," Journal of Business Ethics, Springer, vol. 89(4), pages 491-507, November.
    28. Wicks, Andrew C. & Gilbert, Daniel R. & Freeman, R. Edward, 1994. "A Feminist Reinterpretation of The Stakeholder Concept," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 475-497, October.
    29. Frances Westley & Harrie Vredenburg, 1997. "Interorganizational Collaboration and the Preservation of Global Biodiversity," Organization Science, INFORMS, vol. 8(4), pages 381-403, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mª de la Cruz Déniz-Déniz & Mª Katiuska Cabrera-Suárez & Josefa D. Martín-Santana, 2020. "Orientation Toward Key Non-family Stakeholders and Economic Performance in Family Firms: The Role of Family Identification with the Firm," Journal of Business Ethics, Springer, vol. 163(2), pages 329-345, May.
    2. Heino, Noora & Tuominen, Pasi & Jussila, Iiro, 2020. "Listed Family Firm Stakeholder Orientations: The Critical Role of Value-creating Family Factors," Journal of Family Business Strategy, Elsevier, vol. 11(4).
    3. McGuire, Jean & Dow, Sandra & Ibrahim, Bakr, 2012. "All in the family? Social performance and corporate governance in the family firm," Journal of Business Research, Elsevier, vol. 65(11), pages 1643-1650.
    4. Marcin Borsuk & Nicolas Eugster & Paul-Olivier Klein & Oskar Kowalewski, 2023. "Family Ownership and Carbon Emissions," Working Papers 2023-ACF-01, IESEG School of Management.
    5. Zellweger, Thomas M. & Kellermanns, Franz W. & Eddleston, Kimberly A. & Memili, Esra, 2012. "Building a family firm image: How family firms capitalize on their family ties," Journal of Family Business Strategy, Elsevier, vol. 3(4), pages 239-250.
    6. Basco, Rodrigo, 2013. "The family's effect on family firm performance: A model testing the demographic and essence approaches," Journal of Family Business Strategy, Elsevier, vol. 4(1), pages 42-66.
    7. Ahlers, Oliver & Hack, Andreas & Kellermanns, Franz W., 2014. "“Stepping into the buyers’ shoes”: Looking at the value of family firms through the eyes of private equity investors," Journal of Family Business Strategy, Elsevier, vol. 5(4), pages 384-396.
    8. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 169-183.
    9. Michael Carney & Marc Van Essen & Eric R. Gedajlovic & Pursey P.M.A.R. Heugens, 2015. "What do we know about Private Family Firms? A Meta–Analytical Review," Entrepreneurship Theory and Practice, , vol. 39(3), pages 513-544, May.
    10. Geoffrey Martin & Luis R. Gómez–Mejía & Pascual Berrone & Marianna Makri, 2017. "Conflict between Controlling Family Owners and Minority Shareholders: Much Ado about Nothing?," Entrepreneurship Theory and Practice, , vol. 41(6), pages 999-1027, November.
    11. 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.
    12. Abdellatif, Mahamat & Amann, Bruno & Jaussaud, Jacques, 2010. "Family versus nonfamily business: A comparison of international strategies," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 108-116, June.
    13. Esra Memili & Kaustav Misra, 2015. "Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms," IJFS, MDPI, vol. 3(3), pages 1-36, July.
    14. Kimberly A. Eddleston & Franz W. Kellermanns & Steven W. Floyd & Victoria L. Crittenden & William F. Crittenden, 2013. "Planning for Growth: Life Stage Differences in Family Firms," Entrepreneurship Theory and Practice, , vol. 37(5), pages 1177-1202, September.
    15. Ulrich Lichtenthaler & Miriam Muethel, 2012. "Retracted: The Impact of Family Involvement on Dynamic Innovation Capabilities: Evidence from German Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1235-1253, November.
    16. Vandebeek, Alana & Voordeckers, Wim & Lambrechts, Frank & Huybrechts, Jolien, 2016. "Board role performance and faultlines in family firms: The moderating role of formal board evaluation," Journal of Family Business Strategy, Elsevier, vol. 7(4), pages 249-259.
    17. Antonia Schickinger & Alexandra Bertschi-Michel & Max P. Leitterstorf & Nadine Kammerlander, 2022. "Same same, but different: capital structures in single family offices compared with private equity firms," Small Business Economics, Springer, vol. 58(3), pages 1407-1425, March.
    18. Gopal Krishnan & Marietta Peytcheva, 2019. "The Risk of Fraud in Family Firms: Assessments of External Auditors," Journal of Business Ethics, Springer, vol. 157(1), pages 261-278, June.
    19. Stephen J. Smulowitz & Didier Cossin & Alfredo De Massis & Hongze (Abraham) Lu, 2023. "Wrongdoing in Publicly Listed Family- and Nonfamily-Owned Firms: A Behavioral Perspective," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1233-1264, July.
    20. Melanie Richards, 2023. "When do Non-financial Goals Benefit Stakeholders? Theorizing on Care and Power in Family Firms," Journal of Business Ethics, Springer, vol. 184(2), pages 333-351, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:36:y:2012:i:6:p:1153-1173. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.