Drawing on threshold theory, we examine the effects of attributes of alternative opportunities on persistence decisions of family business entrepreneurs. The results of our conjoint experiment show that: (a) family business entrepreneurs are generally more persistent than other entrepreneurs and (b) family business entrepreneurs focus more on non-financial benefits than other entrepreneurs. Our study contributes to persistence literature within the family business context and provides a good basis for how family business literature can benefit from multi-level theoretical and empirical modelling.
AdamsA. F., MannersG. E., AstrachanJ. H., & MazzolaP. (2004). The importance of integrated goal setting: The application of cost of capital concepts to private firms. Family Business Review, 17(4), 287–302.
2.
BerryH. (2012). When do firms divest foreign operations?Organization Science, 24(1), 246–261. Retrieved from https://doi.org/10.1287/orsc.1110.0724
3.
BurnhamT. A., FrelsJ. K., & MahajanV. (2003). Consumer switching costs: A typology, antecedents, and consequences. Journal of the Academy of Marketing Science, 31(2), 109–126. Retrieved from https://doi.org/10.1177/0092070302250897
4.
ChrismanJ. J., ChuaJ. H., PearsonA. W., & BarnettT. (2012). Family involvement, family influence, and family centered noneconomic goals in small firms. Entrepreneurship Theory and Practice, 36(2), 267–293.
5.
ChrismanJ. J., KellermannsF. W., ChanK. C., & LianoK. (2010). Intellectual foundations of current research in family business: An identification and review of 25 influential articles. Family Business Review, 23(1), 9–26.
6.
ChuaJ. H., ChrismanJ. J., & SharmaP. (1999). Defining the family business by behavior. Entrepreneurship Theory and Practice, 23(4), 19–40.
7.
CohenJ. (1988). Statistical power analysis for the behavioral sciences. Hillsdale, NJ: erlbaum.
8.
CorbettaG., & SalvatoC. (2004). Self-serving or self-actualizing? Models of man and agency costs in different types of family firms: A commentary on ‘comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence’. Entrepreneurship Theory and Practice, 28(4), 355–362.
9.
CraigJ., & MooresK. (2005). Balanced scorecards to drive the strategic planning of family firms. Family Business Review, 18(2), 105–122.
10.
DavisJ. H., AllenM. R., & HayesH. D. (2010). Is blood thicker than water? A study of stewardship perceptions in family business. Entrepreneurship Theory and Practice, 34(6), 1093–1116.
11.
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(3), 337–360. Retrieved from https://doi.org/10.1111/joms.120
12.
DeTienneD. R., & ChiricoF. (2013). Exit strategies in family firms: How socioemotional wealth drives the threshold of performance. Entrepreneurship: Theory & Practice, 37(6), 1297–1318. Retrieved from https://doi.org/10.1111/etap.12067
13.
DeTienneD. R., McKelvieA., & ChandlerG. N. (2015). Making sense of entrepreneurial exit strategies: A typology and test. Journal of Business Venturing, 30(2), 255–272.
14.
DeTienneD. R., ShepherdD. A., & De CastroJ. O. (2008). The fallacy of ‘only the strong survive’: The effects of extrinsic motivation on the persistence decisions for under-performing firms. Journal of Business Venturing, 23(5), 528–546.
15.
DistelbergB., & SorensonR. L. (2009). Updating systems concepts in family businesses. Family Business Review, 22(1), 65–81.
16.
DyerW. G., & HandlerW. (1994). Entrepreneurship and family business: Exploring the connections. Entrepreneurship Theory and Practice, 19(1), 71.
17.
DyerW. G., NenqueE., & HillE. J. (2014). Toward a theory of family capital and entrepreneurship: Antecedents and outcomes. Journal of Small Business Management, 52(2), 266–285. Retrieved from https://doi.org/10.1111/jsbm.12097
18.
EckhardtJ. T., & ShaneS. A. (2003). Opportunities and entrepreneurship. Journal of Management, 29(3), 333–349. Retrieved from https://doi.org/10.1016/S0149-2063(02)00225-8
19.
EddlestonK. A., & KellermannsF. W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22(4), 545–565.
20.
EvertR. E., MartinJ. A., McLeodM. S., & PayneG. T. (2016). Empirics in family business research: Progress, challenges, and the path ahead. Family Business Review, 29(1), 17–43.
21.
FamaE. F., & JensenM. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325.
22.
FromkinH. L., & StreufertS. (1972). Laboratory experimentation. Lafayette, IN: Herman C Krannert Graduate School of Industrial Administration, Purdue University.
23.
GimenoJ., FoltaT. B., CooperA. C., & WooC. Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42(4), 750–783.
24.
Gómez-MejíaL. R., MakriM., & KintanaM. L. (2010). Diversification decisions in family-controlled firms. Journal of Management Studies, 47(2), 223–252. Retrieved from https://doi.org/10.1111/j.1467-6486.2009.00889.x
25.
HahnG. L., & ShapiroS. (1966). A catalog and computer program for use with dymmetric and ssymmetric fractional factorial experiments. Presented at the Annual Convention of the American Statistical Association. Los Angeles, CA.
26.
HaynieJ. M., ShepherdD. A., & PatzeltH. (2012). Cognitive adaptability and an entrepreneurial task: The role of metacognitive ability and feedback. Entrepreneurship Theory and Practice, 36(2), 237–265.
27.
HollandD. V., & GarrettR. P. (2015). Entrepreneur start-up versus persistence decisions: A critical evaluation of expectancy and value. International Small Business Journal, 33(2), 194–215. Retrieved from https://doi.org/10.1177/0266242613480375
28.
HollandD. V., & ShepherdD. A. (2013). Deciding to persist: Adversity, values, and entrepreneurs’ decision policies. Entrepreneurship Theory and Practice, 37(2), 331–358.
29.
HsuD. K., WiklundJ., AndersonS. E., & CoffeyB. S. (2016). Entrepreneurial exit intentions and the business-family interface. Journal of Business Venturing, 31(6), 613–627.
30.
HvideH. K., & PanosG. A. (2014). Risk tolerance and entrepreneurship. Journal of Financial Economics, 111(1), 200–223.
31.
IttnerC. D., & LarckerD. F. (1998). Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research, 36(Suppl.), 1–35.
32.
JaskiewiczP., CombsJ. G., & RauS. B. (2015). Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship. Journal of Business Venturing, 30(1), 29–49.
33.
LongC. P., BenderskyC., & MorrillC. (2011). Fairness monitoring: Linking managerial controls and fairness judgments in organizations. Academy of Management Journal, 54(5), 1045–1068.
34.
López-FernándezM. C., Serrano BediaA. M., & PérezM. (2016). Entrepreneurship and family firm research: A bibliometric analysis of an emerging field. Journal of Small Business Management, 54(2), 622–639. Retrieved from https://doi.org/10.1111/jsbm.12161
35.
MahtoR. V., DavisP. S., PearceJ. A., & RobinsonR. B. (2010). Satisfaction with firm performance in family businesses. Entrepreneurship Theory and Practice, 34(5), 985–1001.
36.
MillerD., SteierL., & Breton-MillerL. (2016). What can scholars of entrepreneurship learn from sound family businesses?Entrepreneurship Theory and Practice, 40(3), 445–455.
37.
PandaR. K. (2016). To expand or to diversify: The dilemma of grihasthi udyog. The Journal of Entrepreneurship, 25(1), 89–102.
38.
RandersonK., BettinelliC., FayolleA., & AndersonA. (2015). Family entrepreneurship as a field of research: Exploring its contours and contents. Journal of Family Business Strategy, 6(3), 143–154. Retrieved from https://doi.org/10.1016/j.jfbs.2015.08.002
39.
RaudenbushS. W., BrykA. S., CheongY. F., CongdonR. T., & du ToitM. (2011). HLM 7 [Windows]. Lincolnwood, IL: Scientific Software International, Inc.
40.
RoundyP. T., & BonnalM. (2017). The singularity of social entrepreneurship: Untangling its uniqueness and market function. The Journal of Entrepreneurship, 26(2), 137–162.
41.
SchulzeW. S., LubatkinM. H., & DinoR. N. (2003). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18(4), 473–490. Retrieved from https://doi.org/10.1016/S0883-9026(03)00054-5
42.
SharmaP., & IrvingP. G. (2005). Four bases of family business successor commitment: Antecedents and consequences. Entrepreneurship Theory and Practice, 29(1), 13–33.
43.
SharmaP., ChrismanJ. J., & GersickK. E. (2012). 25 years of family business review: Reflections on the past and perspectives for the future. Family Business Review, 25(1), 5–15.
44.
TagiuriR., & DavisJ. A. (1992). On the goals of successful family companies. Family Business Review, 5(1), 43–62.
45.
TangpongC., AbebeM., & LiZ. (2015). A temporal approach to retrenchment and successful turnaround in declining firms. Journal of Management Studies, 52(5), 647–677.
46.
TraceyP., PhillipsN., & JarvisO. (2011). Bridging institutional entrepreneurship and the creation of new organizational forms: A multilevel model. Organization Science, 22(1), 60–80.
47.
VandemaeleS., & VancauterenM. (2015). Nonfinancial goals, governance, and dividend payout in private family firms. Journal of Small Business Management, 53(1), 166–182. Retrieved from https://doi.org/10.1111/jsbm.12063
48.
WalkerE., & BrownA. (2004). What success factors are important to small business owners?International Small Business Journal, 22(6), 577–594. Retrieved from https://doi.org/10.1177/0266242604047411
49.
WatsonT. J. (2009). Entrepreneurial action, identity work and the use of multiple discursive resources: The case of a rapidly changing family business. International Small Business Journal, 27(3), 251–274.
50.
XieX., MaH., & LuX. (2016). Toward a typology of exit strategies. Management Decision, 54(8), 1986–2007. Retrieved from https://doi.org/10.1108/MD-03-2016-0183
51.
ZahraS. A. (2003). International expansion of US manufacturing family businesses: The effect of ownership and involvement. Journal of Business Venturing, 18(4), 495–512.
52.
ZahraS. A., HaytonJ. C., & SalvatoC. (2004). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28(4), 363–381.
53.
ZellwegerT. M., NasonR. S., NordqvistM., & BrushC. G. (2013). Why do family firms strive for nonfinancial goals? An organizational identity perspective. Entrepreneurship Theory and Practice, 37(2), 229–248.
