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Do We Really Want to Cut Out the Deadwood? Family-Centered Noneconomic Goals, Restructuring Aversion, and Escalation of Commitment

In: The Palgrave Handbook of Heterogeneity among Family Firms

Author

Listed:
  • Claudia Pongelli

    (LUISS University)

  • Salvatore Sciascia

    (IULM University)

  • Tommaso Minola

    (University of Bergamo)

Abstract

We contribute to the theoretical depiction of family firms’ reactions during a downturn by adopting the ability and willingness approach. Specifically, we suggest that the combination of the ability and the willingness to pursue family-centered noneconomic (FCNE) goals makes family firms less likely to engage in restructuring activities and more likely to engage in an escalation of commitment. Moreover, we further investigate the family firms’ heterogeneity and introduce the idea that the willingness of family firms to pursue FCNE goals may be influenced by the geographical context and the generational stage of the enterprising family.

Suggested Citation

  • Claudia Pongelli & Salvatore Sciascia & Tommaso Minola, 2019. "Do We Really Want to Cut Out the Deadwood? Family-Centered Noneconomic Goals, Restructuring Aversion, and Escalation of Commitment," Springer Books, in: Esra Memili & Clay Dibrell (ed.), The Palgrave Handbook of Heterogeneity among Family Firms, chapter 18, pages 485-505, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-77676-7_18
    DOI: 10.1007/978-3-319-77676-7_18
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