The persistence of family firms: How does performance threshold affect family firm exit?

Noni Symeonidou; Dawn De Tienne; Francesco Chirico

The persistence of family firms: How does performance threshold affect family firm exit?

Noni Symeonidou, Dawn De Tienne, Francesco Chirico

Department of Management

Research output: Contribution to journal › Article › peer-review

Abstract

Research on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1,191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.

Original language	English
Journal	Small Business Economics
Publication status	Accepted/In press - 1 Mar 2021

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title = "The persistence of family firms: How does performance threshold affect family firm exit?",

abstract = "Research on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1,191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.",

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AU - De Tienne, Dawn

AU - Chirico, Francesco

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N2 - Research on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1,191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.

AB - Research on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1,191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.

M3 - Article

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

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