We investigate how family relationship conflict and family and firm name congruence influence subjective firm valuations by family firm owner-managers. Drawing on the socioemotional wealth perspective, behavioral agency theory and mixed gamble reasonings, we hypothesize and find a U-shaped association between relationship conflict inside the family firm and subjective firm valuation. While we do not find a direct effect between name congruence and subjective firm valuation, we show that name congruence interacts with relationship conflict to affect valuations in a complex fashion. Implications and contributions of our findings are discussed.
AhlersO.HackA.KellermannsF. W.WrightM. (2017). Is it all about money? Affective commitment and the difference between family and non-family sellers in buyouts. British Journal of Management, 28, 159-179.
2.
AlbertS.WhettenD. A. (1985). Organizational identity. In CummingsL. L.StawB. M. (Eds.), Research in organizational behavior (Vol. 7, pp. 263-295). Greenwich, CT: JAI Press.
3.
AmasonA. C. (1996). Distinguishing the effects of functional and dysfunctional conflict on strategic decision making: Resolving a paradox for top management teams. Academy of Management Journal, 39, 123-148.
4.
AndersonR.ReebD. (2003). Founding-family ownership and firm performance: Evidence from S&P 500. Journal of Finance, 58, 1301-1327.
5.
ArkesH. R.BlumerC. (1985). The psychology of sunk costs. Organizational Behavior and Human Decision Processes, 35, 124-140.
6.
AstrachanJ.JaskiewiczP. (2008). Emotional returns and emotional costs in privately-held family businesses: Advancing traditional business valuation. Family Business Review, 21, 139-150.
7.
BarkiH.HartwickJ. (2004). Conceptualizing the construct of interpersonal conflict. International Journal of Conflict Management, 15, 216-244.
BeehrT. A.DrexlerJ. A.Jr.FaulknerS. (1997). Working in small family businesses: Empirical comparisons to non-family businesses. Journal of Organizational Behavior, 18, 297-312.
10.
BerroneP.CruzC.Gómez-MejíaL. R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25, 258-279.
11.
BerroneP.CruzC. C.Gómez-MejíaL. R.Larraza KintanaM. (2010). Socioemotional wealth and corporate response to institutional pressures: Do family-controlled firms pollute less?Administrative Science Quarterly, 55, 82-113.
12.
BodtkerA. M.JamesonJ. K. (2001). Emotion in conflict formation and its transformation: Application to organizational conflict management. International Journal of Conflict Management, 12, 259-275.
13.
BonoJ. E.McNamaraG. (2011). From the editors: Publishing in AMJ—part 2: Research design. Academy of Management Journal, 54, 657-660.
14.
BoyceR. R.BrownT. C.McClellandG. H.PetersonG. L.SchulzeW. D. (1992). An experimental examination of intrinsic values as a source of the WTA-WTP disparity. American Economic Review, 82, 1366-1373.
Cabrera-SuárezK.Deniz-Denizd. L. C.Martin-SantanaJ. D. (2014). The setting of non-financial goals in the family firm: The influence of family climate and identification. Journal of Family Business Strategy, 5, 289-299.
17.
CampopianoG.De MassisA.ChiricoF. (2014). Firm philanthropy in small- and medium-sized family firms: The effects of family involvement in ownership and management. Family Business Review, 27, 244-258.
18.
CapronL.ShenJ.-C. (2007). Acquisitions of private vs. public firms: Private information, target selection, and acquirer returns. Strategic Management Journal, 28, 891-911.
19.
CarmonZ.ArielyD. (2000). Focusing on the forgone: How value can appear so different to buyers and sellers. Journal of Consumer Research, 27, 360-370.
20.
CassonM. (1999). The economics of the family firm. Scandinavian Economics History Review, 47(1), 10-23.
21.
ChrismanJ. J.ChuaJ. H.LitzR. (2004). Comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice, 28, 335-354.
22.
ChrismanJ. J.PatelP. J. (2012). Variations in R&D investments of family and non-family firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55, 976-997.
23.
ChuaJ. H.ChrismanJ. J.De MassisA. (2015). A closer look at socioemotional wealth: Its flows, stocks, and prospects for moving forward. Entrepreneurship Theory and Practice, 39, 173-182.
24.
ChuaJ. H.ChrismanJ. J.SteierL. P.RauS. B. (2012). Sources of heterogeneity in family firms: An introductionEntrepreneurship Theory and Practice, 36, 1103-1113.
25.
CohenJ.CohenP.WestS.AikenL. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (3rd ed.). Mahwah, NJ: Lawrence Erlbaum.
26.
CopelandT.KollerT.MurrinJ.2000. Valuation: Measuring and managing the value of companies. New York, NY: Wiley.
27.
CruzC. C.Gómez-MejíaL. R.BecerraM. (2010). Perceptions of benevolence and the design of agency contracts: CEO-TMT relationships in family firms. Academy of Management Journal, 53, 69-89.
28.
CurasiC. F.PriceL. L.ArnouldE. J. (2004). How individuals’ cherished possessions become families’ inalienable wealth. Journal of Consumer Research, 31, 609-622.
29.
DanesS. M.ZuikerV.KeanR.ArbuthnotJ. (1999). Predictors of family business tension and goal achievement. Family Business Review, 12, 241-252.
30.
De DreuC. K. W.Van VianenA. E. M. (2001). Managing relationship conflict and the effectiveness of organizational teams. Journal of Organizational Behavior, 22, 309-328.
31.
De DreuC. K. W.WeingartL. R. (2003). Task versus relationship conflict and team effectiveness: A meta-analysis. Journal of Applied Psychology, 88, 741-749.
32.
De MassisA.KotlarJ.MazzolaP.MinolaT.SciasciaS. (2018). Conflicting selves: Family owners’ multiple goals and self-control agency problems in private firms. Entrepreneurship Theory and Practice, 42, 362-389.
33.
DeephouseD. L.JaskiewiczP. (2013). Do family firms have better reputations than non-family firms? An integration of socioemotional wealth and social identity theories. Journal of Management Studies, 50, 337-360.
34.
DeStenoD.PettyR. E.WegenerD. T.RuckerD. D. (2000). Beyond valence in the perception of likelihood: The role of emotion specificity. Journal of Personality and Social Psychology, 78, 397-416.
35.
DeutschM. (1969). Conflicts: Productive and destructive. Journal of Social Issues, 25(1), 7-41.
36.
DyerW. G. (1986). Cultural change in family firms: Anticipating and managing business and family transition. San Francisco, CA: Jossey-Bass.
37.
DyerW. G.Jr. (2006). Examining the “family effect” on firm performance. Family Business Review, 19, 253-273.
38.
DyerW. G.Jr.WhettenD. A. (2006). Family firms and social responsibility: Preliminary evidence from the S&P 500. Entrepreneurship Theory and Practice, 30, 785-802.
39.
EddlestonK.KellermannsF. W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22, 545-565.
40.
EddlestonK.KellermannsF. W.SarathyR. (2008). Resource configuration in family firms: Linking resources, strategic planning and technological opportunities to performance. Journal of Management Studies, 45(1), 26-50.
41.
EddlestonK.KidwellR. E. (2012). The bad seed’s poisonous harvest: How offspring sow and reap deviant and dysfunctional behavior in the family business. In CarsrudA.BrännbackM. (Eds.), In understanding family businesses: Undiscovered approaches, unique perspectives and neglected topics (pp. 95-114). New York, NY: Springer.
42.
FernandoG. D.SchneibleR. A.Jr.SuhS. (2014). Family firms and institutional investors. Family Business Review, 27, 328-345.
43.
FiolC. M.PrattM. G.O’ConnorE. J. (2009). Managing intractable identity conflicts. Academy of Management Review, 34, 32-55.
44.
ForgasJ. P. (1995). Mood and judgment: The affect infusion model. Psychological Bulletin, 117, 39-66.
45.
FossN. J.KleinP. G.KorY. Y.MahoneyJ. T. (2008). Entrepreneurship, subjectivism, and the resource-based view: Toward a new synthesis. Strategic Entrepreneurship Journal, 2(1), 73-94.
46.
GedajlovicE.CarneyM.ChrismanJ. J.KellermannsF. W. (2012). The adolescence of family firm research: Taking stock and planning for the future. Journal of Management, 38, 1010-1037.
47.
GersickK. E.DavisJ. A.HamptonM. M.LansbergI. (1997). Generation to generation: Life cycles of the family business. Boston, MA: Harvard Business School Press.
48.
Gómez-MejíaL. R.CruzC.BerroneP.De CastroJ. (2011). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5, 653-707.
49.
Gómez-MejíaL. R.HaynesK. T.Núñez-NickelM.JacobsonK. J. L.Moyano-FuentesH. (2007). Socioemotional wealth and business risk in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52, 106-137.
50.
Gómez-MejíaL. R.MakriM.Larraza-KintanaM. (2010). Diversification decisions in family-controlled firms. Journal of Management Studies, 47, 223-252.
51.
Gómez-MejíaL. R.PatelP. C.ZellwegerT. M. (2018). In the horns of the dilemma: Socioemotional wealth, financial wealth, and acquisitions in family firms. Journal of Management, 2018, 1369-1397.
52.
Gómez-MejíaL. R.Tochman CampbellJ.MartinG.HoskissonR. E.MakriM.SirmonD. G. (2014). Socioemotional wealth as a mixed gamble: Revisiting family firm R&D investments with the behavioral agency theory. Entrepreneurship and Theory and Practice, 38, 1351-1374.
53.
GordonG.NicholsonN. (2008). Family wars: Classic conflicts in family business and how to deal with them. London, England: Kogan Page.
GutiérrezM.TribóJ. A. (2004). Private benefit extraction in closely-held corporations: The case for multiple large shareholders. Working Paper 04-43, Business Economics Series 15.
56.
HairJ. F.BlackB.BabinB.AndersonR. E. (2010). Multivariate data analysis (6th ed.). Upper Saddle River, NJ: Prentice Hall.
57.
HamiltonB. H.NickersonJ. A. (2003). Correcting for endogeneity in strategic management research. Strategic Organization, 1, 51-78.
58.
HandlerW. C. (1990). Succession in owner-managed and family firms: A mutual role adjustment between entrepreneur and the next generation. Entrepreneurship Theory and Practice, 15, 37-51.
59.
HofstedeG. (2001). Culture’s consequences: Comparing values, behavior, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: Sage.
60.
HorowitzJ. K.McConnellK. E. (2002). A review of WTA/WTP studies. Journal of Environmental Economics and Management, 44, 426-447.
61.
IsenA. M.BaronR. A. (1991). Positive affect as a factor in organizational behavior. Research in Organizational Behavior, 13, 1-53.
62.
JamesL. R.DemareeR. G.WolfG. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69(1), 85-98.
63.
JehnK. A. (1995). A multimethod examination of the benefits and detriments of intragroup conflict. Administrative Science Quarterly, 40, 256-282.
64.
JehnK. A. (1997). A quantitative analysis of conflict types and dimensions in organizational groups. Administrative Science Quarterly, 42, 530-558.
65.
JehnK. A.MannixE. A. (2001). The dynamic nature of conflict: A longitudinal study of intragroup conflict and group performance. Academy of Management Journal, 44, 238-251.
66.
JiangD.KellermannsF. W.MunyonT. P.LaneM. (2018). More than meets the eye: A review and future directions for the social psychology of socioemotional wealth. Family Business Review, 31, 125-157.
67.
KahnemanD.KnetschJ. L.ThalerR. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic Perspectives, 5, 193-206.
68.
KammerlanderN. (2016). I want this firm to be in good hands’: Emotional pricing of resigning entrepreneurs. International Small Business Journal, 34, 189-214.
69.
KaslowF. (1993). The lore and lure of family business. American Journal of Family Therapy, 21, 3-16.
70.
KellermannsF. W.EddlestonK. (2004). Feuding families: When conflict does a family firm good. Entrepreneurship Theory and Practice, 28, 209-228.
71.
KellermannsF. W.EddlestonK.ZellwegerT. (2012). Extending the socioemotional wealth perspective: A look at the dark side. Entrepreneurship Theory and Practice, 36, 1175-1182.
72.
KeltnerD.EllsworthP. C.EdwardsK. (1993). Beyond simple pessimism: Effects of sadness and anger on social perception. Journal of Personality and Social Psychology, 64, 740-752.
73.
KidwellR. E.KellermannsF. W.EddlestonK. A. (2012). Harmony, justice, confusion and conflict in family firms: Implications for ethical climate and the “Fredo effect.”Journal of Business Ethics, 106, 175-184.
74.
KleinS. B. (2000). Family businesses in Germany: Significance and structure. Family Business Review, 13, 157-181.
75.
KotlarJ.De MassisA. (2013). Goal setting in family firms: Goal diversity, social interactions, and collective commitment to family-centered goals. Entrepreneurship Theory and Practice, 37, 1263-1288.
76.
KotlarJ.SignoriA.De MassisA.VismaraS. (2018). Financial wealth, socioemotional wealth and IPO underpricing in family firms: A two-stage gamble model. Academy of Management Journal. Advance online publication. doi:10.5465/amj.2016.0256
77.
KumarN.SternL. W.AndersonJ. C.1993. Conducting interorganizational research using key in-formants. Academy of Management Journal, 36, 1633-1651.
78.
LazarusR. S. (1991). Emotion and adaptation. New York, NY: Oxford University Press.
79.
Le Breton-MillerI.MillerD.SteierL. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28, 305-329.
80.
LeitterstorfM. P.RauS. B. (2014). Socioemotional wealth and IPO underpricing of family firms. Strategic Management Journal, 35, 751-760.
81.
LernerJ. S.KeltnerD. (2000). Beyond valence: Toward a model of emotion-specific influences on judgment and choice. Cognition & Emotion, 14, 473-493.
82.
LernerJ. S.SmallD. A.LoewensteinG. (2004). Heart strings and purse strings: Carryover effects of emotions on economic decisions. Psychological Science, 15, 337-341.
83.
LingY.KellermannsF. (2010). The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47, 322-344.
84.
LoewensteinG.LernerJ. S. (2003). The role of affect in decision making. In DavidsonR.GoldsmithH.SchererK. (Eds.), Handbook of affective science (pp. 619-642). Oxford, England: Oxford University Press.
85.
LoveL. G.PriemR. L.LumpkinG. T. (2002). Explicitly articulated strategy and firm performance under alternative levels of centralization. Journal of Management, 28, 611-627.
86.
LubatkinM. H.SchulzeW. S.LingY.DinoR. N. (2005). The effects of parental altruism on the governance of family-managed firms. Journal of Organizational Behavior, 26, 313-330.
87.
MartinG.Gómez-MejíaL. R. (2016). The relationship between socioemotional and financial wealth re-visiting family firm decision making. Management Research, 14, 215-233.
88.
MartinG. P.Gomez-MejiaL. R.WisemanR. M. (2013). Executive stock options as mixed gambles: Revisiting the behavioral agency model. Academy of Management Journal, 56, 451-472.
89.
MazenA. M. M.HemmasiM.LewisM. F. (1987). Assessment of strategic power in contemporary strategy research. Strategic Management Journal, 8, 403-410.
90.
McKeeD.MaddenT. M.KellermannsF. W.EddlestonK. A. (2014). Conflicts in family firms: The good and the bad. In MelinL.NordqvistM.SharmaP. (Eds.), Sage handbook of family business (pp. 514-528). London, England: Sage.
91.
MemiliE.ChangE. P. C.KellermannsF. W.WelchD. H. P. (2015). Role conflicts of family members in family firms. European Journal of Work and Organizational Psychology, 24, 143-151.
92.
MillerD.Breton-MillerI. L. (2014). Deconstructing socioemotional wealth. Entrepreneurship Theory and Practice, 38, 713-720.
93.
MoonH. (2001). Looking forward and looking back: Integrating completion and sunk-cost effects within an escalation-of-commitment progress decision. Journal of Applied Psychology, 86, 104-113.
94.
NayankankuppamD.MishraH. (2005). The endowment effect: Rose-tinted and dark-tinted glasses. Journal of Consumer Research, 32, 390-395.
95.
OppenheimA. N. (1966). Questionnaire design and attitude measurement. New York, NY: Free Press.
96.
PatelP. C.ChrismanJ. J. (2014). Risk abatement as a strategy for R&D investments in family firms. Strategic Management Journal, 36, 617-627.
97.
Pérez-GonzálezF. (2006). Inherited control and firm performance. American Economic Review, 96, 1550-1588.
98.
PodsakoffP. M.MacKenzieS. B.LeeJ.-Y.PodsakoffN. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88, 879-903.
99.
PodsakoffP. M.OrganD. W. (1986). Self-reports in organizational research: Problems and perspectives. Journal of Management, 12, 531-544.
100.
PriemR.PriceK. (1991). Process and outcome expectation for the dialectic inquiry, devil’s advocacy, and consensus techniques of strategic decision making. Group & Organization Studies, 16, 206-225.
101.
RusbultC. E.LangeP. A. M. V. (2003). Interdependence, interaction, and relationships. Annual Review of Psychology, 54, 351-375.
102.
RustingC. L. (1998). Personality, mood, and cognitive processing of emotional information: Three conceptual frameworks. Psychological Bulletin, 124, 165-196.
103.
SchulzeW. S.KellermannsF. W. (2015). Reifying socioemotional wealth. Entrepreneurship Theory and Practice, 39, 447-459.
104.
SchulzeW. S.LubatkinM. H.DinoR. N. (2003). Exploring the agency consequences of ownership dispersion among the directors of private family firms. Academy of Management Journal, 46, 179-194.
105.
SchulzeW. S.LubatkinM. H.DinoR. N.BuchholtzA. K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12, 99-116.
106.
SharmaP.ManikuttyS. (2005). Strategic divestment in family firms: Role of family structure and community culture. Entrepreneurship Theory and Practice, 20, 293-312.
107.
ShepherdD. A.ZacharakisA.2000. Structuring family business succession: An analysis of the future leader’s decision making. Entrepreneurship Theory and Practice, 24, 25-39.
108.
SimonsT. L.PetersonR. S. (2000). Task conflict and relationship conflict in top management teams: The pivotal role of intragroup trust. Journal of Applied Psychology, 85102-111.
109.
SorensonR. L. (1999). Conflict management strategies used in successful family businesses. Family Business Review, 12, 325-339.
110.
StanleyL. J.KellermannsF. W.ZellwegerT. (2017). Latent profile analysis: Understanding family firm profiles. Family Business Review, 30, 84-102.
111.
SundaramurthyC.KreinerG. E. (2008). Governing by managing identity boundaries: The case of family businesses. Entrepreneurship Theory and Practice, 32, 415-436.
112.
TabachnickB. G.FidellL. S. (1996). Using multivariate statistics (3rd. ed.). New York, NY: HarperCollins.
113.
ThalerR. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior & Organization, 1(1), 39-60.
114.
ThomasK. W. (1992). Conflict and conflict management: Reflections and update. Journal of Organizational Behavior, 13, 265-274.
115.
ThomsenS.PedersenT. (2000). Ownership structure and economic performance in the largest European companies. Strategic Management Journal, 21, 689-705.
116.
TverskyA.KahnemanD. (1991). Loss aversion in riskless choice: A reference-dependent model. Quarterly Journal of Economics, 107, 1039-1061.
117.
VillalongaB.AmitR. (2006). How do family ownership, control and management affect firm value?Journal of Financial Economics, 80, 385-417.
118.
WestheadP.CowlingM. (1998). Family firm research: The need for a methodological rethink. Entrepreneurship Theory and Practice, 23, 31-56.
119.
WestheadP.HoworthC. (2007). “Types” of private family firm: An exploratory conceptual and empirical analysis. Entrepreneurship and Regional Development, 19, 405-431.
120.
WisemanR. M.Gómez-MejíaL. R. (1998). A behavioral agency model of managerial risk taking. Academy of Management Review, 23, 133-153.
121.
YangJ.MossholderK. W. (2004). Decoupling task and relationship conflict: The role of intragroup emotional processing. Journal of Organizational Behavior, 25, 589-605.
122.
ZellwegerT.AstrachanJ. (2008). On the emotional value of owning a firm. Family Business Review, 21, 347-363.
123.
ZellwegerT.DehlenT. (2012). Value is in the eye of the owner: Affect infusion and acceptable sale prices for private family firm ownership. Family Business Review, 25, 280-297.
124.
ZellwegerT.KellermannsF. W.EddlestonK.MemiliE. (2012). Building a family firm image: How family firms capitalize on their family ties. Journal of Family Business Strategy, 3, 239-250.
125.
ZellwegerT.NasonR.NordqvistM.BrushC. (2013). Why do family firms strive for nonfinancial goals? An organizational identity perspective. Entrepreneurship Theory and Practice, 37, 229-248.
126.
ZellwegerT.RichardsM.SiegerP.PatelP. C. (2016). How much am I expected to pay for my partner’s firm? An institutional logics perspective on family discounts. Entrepreneurship Theory and Practice, 40, 1041-1069.
127.
ZellwegerT. M.EddlestonK. A.KellermannsF. W. (2010). Exploring the concept of familiness: Introducing family firm identity. Journal of Family Business Strategy, 1, 54-63.
128.
ZellwegerT. M.KellermannsF. W.ChrismanJ. J.ChuaJ. H. (2012). Family control and family firm valuation by family CEOs: The importance of intentions for transgenerational control. Organization Science, 23, 851-868.
