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The Effect of Transgenerational Control Intention on Family-Firm Performance: It Depends Who Pursues It

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  • Christian Hoffmann
  • Peter Jaskiewicz
  • Torsten Wulf
  • James G. Combs

Abstract

Transgenerational control intention (TCI) is a pivotal characteristic of many family firms. Yet, it remains unclear whether TCI benefits family-firm performance by instilling a long-term view, or hurts performance by fueling harmful socioemotional wealth (SEW) goals. We posit that it depends who pursues it. When faced with TCI, family managers are known to suffer from cognitive biases that, we submit, do not similarly apply to nonfamily managers. Thus, only family managers harm performance when pursuing TCI. An empirical investigation of 107 private German family firms supports our theory; the effect of TCI on firm performance depends on who pursues it.

Suggested Citation

  • Christian Hoffmann & Peter Jaskiewicz & Torsten Wulf & James G. Combs, 2019. "The Effect of Transgenerational Control Intention on Family-Firm Performance: It Depends Who Pursues It," Entrepreneurship Theory and Practice, , vol. 43(3), pages 629-646, May.
    • Handle: RePEc:sae:entthe:v:43:y:2019:i:3:p:629-646
    DOI: 10.1177/1042258717730025
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    References listed on IDEAS

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    4. Cox, Kevin C. & Lortie, Jason & Marshall, David R. & Kidwell, Roland E., 2022. "Beyond the balance Sheet: The effects of family influence on social performance," Journal of Business Research, Elsevier, vol. 143(C), pages 318-330.

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