Exploring Top Management Team Composition in Private Family Firms
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Private family firms represent the most common form of organization worldwide and have consequently received considerable attention in the academic literature (Memili et al., Small Business Economics, 2015). Despite growing interest, the study of human resource management in this particular context is only emerging. This research note tries to offer new insights into this problem by exploring how specific organizational factors influence the appointment of non-family members to the top management team (TMT).
To address this question, we rely on the socioemotional wealth (SEW) perspective (Gómez-Mejía et al., Administrative Science Quarterly, 2007). SEW refers to the non-financial utility family principals derive from their ownership and influence in the business, and covers non-financial aspects such as identity, the ability to exercise family influence, and the perpetuation of the family dynasty. According to the SEW model, family principals are risk averse with respect to SEW. As a...