Abstract
This paper explores the relationship between the nature of shocks (family vs. business related), the relative importance of socioemotional wealth importance (SEWi) dimensions (family prominence, enrichment and continuity), and the entrepreneurial orientation (EO) of family firms over time. An exploratory multiple case research based on critical realism was conducted to theorize on how shocks define socially constructed time, which in turn explains the social dynamic behind family firms’ priorities and routines exposing EO. By integrating socioemotional wealth (SEW) framework to time and routine framework from organizations studies, it is proposed that shocks determine the formation and speed of evolution of estuaries of time in family firms. This also explains which are the priorities driving decisions of change or stability within these firms as well as the social and emotional dynamic between the family and the businesses explaining changes in EO.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
Paragraph
References
Alonso-Dos-Santos, M., & Llanos-Contreras, O. (2018). Family business performance in a post-disaster scenario: The influence of socioemotional wealth importance and entrepreneurial orientation. Journal of Business Research, 101, 492–498. https://doi.org/10.1016/j.jbusres.2018.12.057.
Ancona, D. G., Goodman, P. S., Lawrence, B. S., & Tushman, M. L. (2001). Time: A new research lens. Academy of Management Review, 26(4), 645–663. https://doi.org/10.5465/amr.2001.5393903.
Arrondo-García, R., Fernández-Méndez, C., & Menéndez-Requejo, S. (2016). The growth and performance of family businesses during the global financial crisis: The role of the generation in control. Journal of Family Business Strategy, 7(4), 227–237. https://doi.org/10.1016/j.jfbs.2016.11.003.
Ashforth, B. E., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14(1), 20–39. https://doi.org/10.5465/amr.1989.4278999.
Bhaskar, R. (1975). A realist theory of science (first ed.). London: Verso.
Bluedorn, A. C. (2002). The human organization of time: Temporal realities and experience. Stanford: Stanford University Press.
Bluedorn, A. C., & Martin, G. (2008). The time frames of entrepreneurs. Journal of Business Venturing, 23(1), 1–20.
Chirico, F., & Nordqvist, M. (2010). Dynamic capabilities and trans-generational value creation in family firms: The role of organizational culture. International Small Business Journal, 28(5), 487–504. https://doi.org/10.1177/0266242610370402.
Cruz, C., & Justo, R. (2017). Portfolio entrepreneurship as a mixed gamble: A winning bet for family entrepreneurs in SMEs. Journal of Small Business Management, 55(4), 571–593. https://doi.org/10.1111/jsbm.12341.
Cruz, C., Larraza-Kintana, M., Garcés-Galdeano, L., & Berrone, P. (2014). Are family firms really more socially responsible? Entrepreneurship Theory and Practice, 38(6), 1295–1316.
Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Englewood Cliffs: Prentice-Hall.
Debicki, B. J., Kellermanns, F. W., Chrisman, J. J., Pearson, A. W., & Spencer, B. A. (2016). Development of a socioemotional wealth importance (SEWi) scale for family firm research. Journal of Family Business Strategy, 7(1), 47–57. https://doi.org/10.1016/j.jfbs.2016.01.002.
Dou, J., Zhang, Z., & Su, E. (2014). Does family involvement make firms donate more? Empirical evidence from Chinese private firms. Family Business Review, 27(3), 259–274. https://doi.org/10.1177/0894486514538449.
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550. https://doi.org/10.5465/amr.1989.4308385.
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32. https://doi.org/10.5465/amj.2007.24160888.
Emirbayer, M., & Mische, A. (1998). What is agency? American Journal of Sociology, 103(4), 962–1023. https://doi.org/10.1086/231294.
Ersche, K. D., Lim, T.-V., Ward, L. H. E., Robbins, T. W., & Stochl, J. (2017). Creature of habit: A self-report measure of habitual routines and automatic tendencies in everyday life. Personality and Individual Differences, 116, 73–85. https://doi.org/10.1016/j.paid.2017.04.024.
Feldman, M. S., & Orlikowski, W. J. (2011). Theorizing practice and practicing theory. Organization Science, 22(5), 1240–1253. https://doi.org/10.1287/orsc.1100.0612.
Feldman, M. S., & Pentland, B. T. (2003). Reconceptualizing organizational routines as a source of flexibility and change. Administrative Science Quarterly, 48(1), 94–118. https://doi.org/10.2307/3556620.
Garcia, P. R. J. M., Sharma, P., De Massis, A., Wright, M., & Scholes, L. (2019). Perceived parental behaviors and next-generation engagement in family firms: A social cognitive perspective. Entrepreneurship Theory and Practice, 43(2), 224–243. https://doi.org/10.1177/1042258718796087.
Gersick, C. J. G., & Hackman, J. R. (1990). Habitual routines in task-performing groups. Organizational Behavior and Human Decision Processes, 47(1), 65–97. https://doi.org/10.1016/0749-5978(90)90047-D.
Goldsby, M. G., Kreiser, P. M., Kuratko, D. F., Bishop, J. W., Kreiser, P. M., & Hornsby, J. S. (2018). Social proactiveness and innovation: The impact of stakeholder salience on corporate entrepreneurship. Journal of Small Business Strategy, 28(2), 1–15.
Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J. L., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1), 106–137. https://doi.org/10.2189/asqu.52.1.106.
Graña, F. M., Benavides-Espinosa, M. M., & Roig-Dobón, S. (2018). Determinants of silent and explicit industrial design. Journal of Business Research, 88, 314–320. https://doi.org/10.1016/j.jbusres.2017.11.028.
Healy, M., & Perry, C. (2000). Comprehensive criteria to judge validity and reliability of qualitative research within the realism paradigm. Qualitative Market Research: An International Journal, 3(3), 118–126. https://doi.org/10.1108/13522750010333861.
Howard-Grenville, J. A. (2005). The persistence of flexible organizational routines: The role of agency and organizational context. Organization Science, 16(6), 618–636. https://doi.org/10.1287/orsc.1050.0150.
Jabri, M. (2005). Narrative identity achieved through utterances: The implications of Bakhtin for managing change and learning. Philosophy of Management, 5(3), 83–90. https://doi.org/10.5840/pom2005539.
Jabri, M. (2015). Rethinking organizational change: The role of dialogue, dialectic & polyphony in the organization. London: Routledge.
Karra, N., Tracey, P., & Phillips, N. (2006). Altruism and agency in the family firm: Exploring the role of family, kinship, and ethnicity. Entrepreneurship Theory and Practice, 30(6), 861–877. https://doi.org/10.1111/j.1540-6520.2006.00157.x.
Kedmenec, I., & Strašek, S. (2017). Are some cultures more favourable for social entrepreneurship than others? Economic Research-Ekonomska Istraživanja, 30(1), 1461–1476. https://doi.org/10.1080/1331677X.2017.1355251.
Kong, L., Li, H., Luo, H., Ding, L., & Zhang, X. (2018). Sustainable performance of just-in-time (JIT) management in time-dependent batch delivery scheduling of precast construction. Journal of Cleaner Production, 193, 684–701. https://doi.org/10.1016/j.jclepro.2018.05.037.
Kotlar, J., & De Massis, A. (2013). Goal setting in family firms: Goal diversity, social interactions, and collective commitment to family-centered goals. Entrepreneurship Theory and Practice, 37(6), 1263–1288.
Kotlar, J., Signori, A., Massis, A. D., & Vismara, S. (2018). Financial wealth, socioemotional wealth and IPO underpricing in family firms: A two-stage gamble model. Academy of Management Journal, 61(3), 1073–1099. https://doi.org/10.5465/amj.2016.0256.
Le Breton-Miller, I., & Miller, D. (2013). Socioemotional wealth across the family firm life cycle: A commentary on “family business survival and the role of Boards”. Entrepreneurship Theory and Practice, 37(6), 1391–1397.
Llanos-Contreras, O., & Alonso-Dos-Santos, M. (2018). Exploring the asymmetric influence of socioemotional wealth priorities on entrepreneurial behaviour in family businesses. European Journal of International Management, 12(5/6), 576–595. https://doi.org/10.1504/ejim.2018.094458.
Llanos-Contreras, O. A., & Jabri, M. (2019). Exploring family business decline with socioemotional wealth perspective. Academia Revista Latinoamericana de Administración, 32(1), 63–78. https://doi.org/10.1108/ARLA-02-2018-0042.
Madill, A., Jordan, A., & Shirley, C. (2000). Objectivity and reliability in qualitative analysis: Realist, contextualist and radical constructionist epistemologies. British Journal of Psychology, 91(1), 1–20. https://doi.org/10.1348/000712600161646.
Markin, E., Swab, R. G., & Marshall, D. R. (2017). Who is driving the bus? An analysis of author and institution contributions to entrepreneurship research. Journal of Innovation & Knowledge, 2(1), 1–9. https://doi.org/10.1016/j.jik.2016.10.001.
McCarthy, D. J., Puffer, S. M., & Lamin, A. (2018). Entrepreneurial orientation in a hostile and turbulent environment: Risk and innovativeness among successful Russian entrepreneurs. European Journal of International Management, 12(1/2), 191–221. https://doi.org/10.1504/ejim.2018.089033.
Minichilli, A., Brogi, M., & Calabrò, A. (2016). Weathering the storm: Family ownership, governance, and performance through the financial and economic crisis. Corporate Governance: An International Review, 24(6), 552–568. https://doi.org/10.1111/corg.12125.
Morgan, T. J., & Gomez-Mejia, L. R. (2014). Hooked on a feeling: The affective component of socioemotional wealth in family firms. Journal of Family Business Strategy, 5(3), 280–288.
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge: Harvard University Press.
Olugbola, S. A. (2017). Exploring entrepreneurial readiness of youth and startup success components: Entrepreneurship training as a moderator. Journal of Innovation & Knowledge, 2(3), 155–171. https://doi.org/10.1016/j.jik.2016.12.004.
Parmigiani, A., & Howard-Grenville, J. (2011). Routines revisited: Exploring the capabilities and practice perspectives. Academy of Management Annals, 5(1), 413–453. https://doi.org/10.5465/19416520.2011.589143.
Patel, P. C., & Chrisman, J. J. (2014). Risk abatement as a strategy for R&D investments in family firms. Strategic Management Journal, 35(4), 617–627. https://doi.org/10.1002/smj.2119.
Pejic Bach, M., Aleksic, A., & Merkac-Skok, M. (2018). Examining determinants of entrepreneurial intentions in Slovenia: Applying the theory of planned behaviour and an innovative cognitive style. Economic Research-Ekonomska Istraživanja, 31(1), 1453–1471. https://doi.org/10.1080/1331677X.2018.1478321.
Reay, T. (2019). Family routines and next-generation engagement in family firms. Entrepreneurship Theory and Practice, 43(2), 244–250. https://doi.org/10.1177/1042258718796083.
Reinecke, J., & Ansari, S. (2015). When times collide: Temporal brokerage at the intersection of markets and developments. Academy of Management Journal, 58(2), 618–648. https://doi.org/10.5465/amj.2012.1004.
Reinecke, J., & Ansari, S. (2017). Time, temporality and process studies. In A. Langley & H. Tsoukas (Eds.), The sage handbook of process organization studies (pp. 402–416). Los Angeles: Sage.
Ribeiro-Soriano, D., Roig-Dobón, S., & Tansky, J. (2010). Guest Editors' note: Linking entrepreneurship and human resources in globalization. Human Resource Management, 49(2), 217–223. https://doi.org/10.1002/hrm.20350.
Rita, M. R., Priyanto, S. H., Andadari, R. K., & Haryanto, J. O. (2018). How entrepreneurs anticipate the future market: An initial approach of a future market anticipation model for small businesses. Journal of Small Business Strategy, 28(1), 49–65.
Roig-Dobón, S., & Ribeiro-Soriano, D. (2008). Exploring alternative approaches in service industries: The role of entrepreneurship. The Service Industries Journal, 28(7), 877–882. https://doi.org/10.1080/02642060701846879.
Scuotto, V., Giudice, M. D., Holden, N., & Mattiacci, A. (2017). Entrepreneurial settings within global family firms: Research perspectives from cross-cultural knowledge management studies. European Journal of International Management, 11(4), 469–489. https://doi.org/10.1504/EJIM.2017.085586.
Sharma, P., Salvato, C., & Reay, T. (2014). Temporal dimensions of family enterprise research. Family Business Review, 27(1), 10–19. https://doi.org/10.1177/0894486513516058.
Simon, M., & Kim, J. (2017). Two sources of overconfidence: Incorporating disconfirming feedback in an entrepreneurial context. Journal of Small Business Strategy, 27(3), 9–24.
Smith, R. (2018). Reading liminal and temporal dimensionality in the Baxter family ‘public-narrative’. International Small Business Journal, 36(1), 41–59. https://doi.org/10.1177/0266242617698033.
Vardaman, J. M., & Gondo, M. B. (2014). Socioemotional wealth conflict in family firms. Entrepreneurship Theory and Practice, 38(6), 1317–1322. https://doi.org/10.1111/etap.12126.
Welsh, D. H., & Kaciak, E. (2018). Women’s entrepreneurship: A model of business-family interface and performance. International Entrepreneurship and Management Journal, 14(3), 627–637. https://doi.org/10.1007/s11365-018-0507-6.
Xie, X., & Lv, J. (2018). Female technology entrepreneurs: Resource shortages and reputation challenges – A view of institutional support. International Entrepreneurship and Management Journal, 14(2), 379–403. https://doi.org/10.1007/s11365-017-0450-y.
Yin, R. K. (2014). Case study research and applications: Design and methods (5th ed.). Thousand Oaks: SAGE.
Zahra, S. A., & Sharma, P. (2004). Family business research: A strategic reflection. Family Business Review, 17(4), 331–346. https://doi.org/10.1111/j.1741-6248.2004.00022.x.
Zellweger, T. M., & Dehlen, T. (2012). Value is in the eye of the owner: Affect infusion and socioemotional wealth among family firm owners. Family Business Review, 25(3), 280–297. https://doi.org/10.1177/0894486511416648.
Zellweger, T., & Sieger, P. (2012). Entrepreneurial orientation in long-lived family firms. Small Business Economics, 38(1), 67–84. https://doi.org/10.1007/s11187-010-9267-6.
Zellweger, T. M., Kellermanns, F. W., Chrisman, J. J., & Chua, J. H. (2012). Family control and family firm valuation by family CEOs: The importance of intentions for transgenerational control. Organization Science, 23(3), 851–868. https://doi.org/10.1287/orsc.1110.0665.
Zerubavel, E. (1981). Hidden rhythms: Schedules and calendars in social life. Chicago: University of Chicago Press.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Llanos-Contreras, O., Jabri, M. & Sharma, P. Temporality and the role of shocks in explaining changes in socioemotional wealth and entrepreneurial orientation of small and medium family enterprises. Int Entrep Manag J 15, 1269–1289 (2019). https://doi.org/10.1007/s11365-019-00595-4
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11365-019-00595-4