Array of non-economic utilities that derive from the pursuit of family's SEW and that are likely to reflect the values, attitudes, and intentions of a business family in the firms’ strategic decision-making.
Published in Chapter:
Does the Bargaining Power of Vertical Parties Improve or Worsen the Effect of Family Influence on Long-Term Performance?: A Socioemotional Wealth View
Rubén Martínez-Alonso (University of Almería, Spain), María J. Martínez-Romero (University of Almería, Spain), Julio Diéguez-Soto (University of Málaga, Spain), and Alfonso A. Rojo-Ramírez (University of Almería, Spain)
Copyright: © 2020
|Pages: 31
DOI: 10.4018/978-1-7998-4552-2.ch007
Abstract
Grounding in the socioemotional wealth approach, this chapter explores the effect of family influence on long-term performance. Moreover, this study also examines the moderating role of the bargaining power of vertical parties, namely supplier (SBP) and customer (CBP) bargaining power, on the preceding relationship. By utilising a panel dataset of 3,118 observations of Spanish private manufacturing firms in the 2007–2016 period, the chapter finds that family influence negatively impacts long-term performance. The findings also reveal that CBP mitigates the negative effect of family influence on long-term performance. In this light, CBP is found to be a potential environmental factor that enables family influenced firms enhancing their long-term performance.