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Sales and Employment Changes in Entrepreneurial Ventures with Family Ownership: Empirical Evidence from High‐Tech Industries

Author

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  • Massimo G. Colombo
  • Alfredo De massis
  • Evila Piva
  • Cristina Rossi‐lamastra
  • Mike Wright

Abstract

We examine the relation between changes in employment and changes in sales for entrepreneurial ventures with and without family ownership. We argue that this positive relation is weaker for entrepreneurial ventures with family ownership. The goal of preserving socio‐emotional wealth (SEW) makes indeed these firms more reluctant to hire (fire) employees in correspondence with an increase (decrease) in sales than their counterparts without family ownership. Results on a sample of talian entrepreneurial ventures in high‐tech industries support our arguments. They also show that the strength of the relation depends on the composition of the entrepreneurial team.

Suggested Citation

  • Massimo G. Colombo & Alfredo De massis & Evila Piva & Cristina Rossi‐lamastra & Mike Wright, 2014. "Sales and Employment Changes in Entrepreneurial Ventures with Family Ownership: Empirical Evidence from High‐Tech Industries," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(2), pages 226-245, April.
  • Handle: RePEc:taf:ujbmxx:v:52:y:2014:i:2:p:226-245
    DOI: 10.1111/jsbm.12100
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    Cited by:

    1. María J. Martínez-Romero & Julio Diéguez-Soto & Pieter Vandekerkhof, 2023. "Enlightening the influence of family TMT involvement on firm growth and degrowth rates," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 581-610, September.
    2. Ma, Liangbo, 2023. "Corporate social responsibility reporting in family firms: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    3. Danilo Bertoni & Daniele Cavicchioli & Laure Latruffe, 2023. "Impact of business transfer on economic performance: the case of Italian family farms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 48(2), pages 186-213.

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