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Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic

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  • Richard Gentry
  • Clay Dibrell
  • Jaemin Kim

Abstract

Drawing from the behavioral theory of the firm, we examine the role of a long–term orientation in decision making at publicly traded, family–influenced firms (FIFs). We advance a view of the family as part of a firm's dominant coalition and the resulting effects of a family–influenced coalition on the FIF's decision making. Using a sample of publicly traded firms, our findings indicate that FIFs’ decision making reflects a focus on a long–term orientation, manifested in the greater accumulation of slack resources, less strategic risk taking, and lower bankruptcy risk than non–FIF firms.

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  • Richard Gentry & Clay Dibrell & Jaemin Kim, 2016. "Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic," Entrepreneurship Theory and Practice, , vol. 40(4), pages 733-757, July.
  • Handle: RePEc:sae:entthe:v:40:y:2016:i:4:p:733-757
    DOI: 10.1111/etap.12140
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    4. Ya-Fang Wang & Yen-Fang Kuo, 2020. "Exploring the Family Effect on Innovative Capacity and Earnings Management," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 13(2), pages 39-61, September.
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    11. Pankaj C. Patel & Maria João Guedes, 2022. "Do family firms perform better under financial constraints? Financial constraints, family firms and performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 933-949, June.
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    18. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2020. "Long-Term Orientation as a Resource for Entrepreneurial Orientation in Private Family Firms: The Need for Participative Decision Making," Sustainability, MDPI, vol. 12(13), pages 1-22, July.
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    20. Junsheng Dou & Emma Su & Song Wang, 2019. "When Does Family Ownership Promote Proactive Environmental Strategy? The Role of the Firm’s Long-Term Orientation," Journal of Business Ethics, Springer, vol. 158(1), pages 81-95, August.

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