Beyond Money: Wealth and Wellbeing of the Business Family

Pedro Vazquez; Giovanna Campopiano

doi:10.24310/ejfbejfb.vi.15094

Authors

Pedro Vazquez Universidad Austral, Argentina Argentina https://orcid.org/0000-0003-0534-4622
Giovanna Campopiano University of Bergamo, Italy Italy

DOI:

https://doi.org/10.24310/ejfbejfb.vi.15094

Keywords:

Business family, Family wealth, Ownership Competences, Responsible owner, Socioemotional wealth, Wellbeing

Abstract

This article offers a conceptual discussion about the relationship between wealth and wellbeing of the business family. It provides a psychological perspective on ownership that explains the effect of wealth on individual and collective dimensions relevant to business families, namely psychological ownership, socioemotional wealth, and ownership competences. The study provides an integrative framework and offers propositions that illustrate the theoretical and practical implications of the model as regards the relationship between wealth and wellbeing of the business family.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Basco, R., & Rodríguez, M. J. (2011). Ideal types of family business management: horizontal fit between family and business decisions and the relationship with family business performance. Journal of Family Business Strategy, 2(3), 151-165. https://doi.org/10.1016/j.jfbs.2011.07.004

Baù, M., Pittino, D., Sieger, P., & Eddleston, K. A. (2020). Careers in family business: new avenues for careers and family business research in the 21st century. Journal of Family Business Strategy, 11(3), 100379. https://doi.org/10.1016/j.jfbs.2020.100379

Becker, L. C. (2014). Property rights. Philosophic foundations. Routledge.

Bee, C., & Neubaum, D. O. (2014). The role of cognitive appraisal and emotions of family members in the family business system. Journal of Family Business Strategy, 5(3), 323-333. https://doi.org/10.1016/j.jfbs.2013.12.001

Bernhard, F., & Labaki, R. (2021). Moral emotions in family businesses: exploring vicarious guilt of the next generation. Family Business Review, 34(2), 193-212. https://doi.org/10.1177/0894486520941944

Bernhard, F., & O'Driscoll, M. P. (2011). Psychological ownership in small family-owned businesses: leadership style and nonfamily-employees’ work attitudes and behaviors. Group & Organization Management, 36(3), 345-384. https://doi.org/10.1177/1059601111402684

Berrone, P., Cruz, C., & Gómez-Mejía, L. R. (2012). Socioemotional wealth in family firms: theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25(3), 258-279. https://doi.org/10.1177/0894486511435355

Binz Astrachan, C., Astrachan, J. H., Kotlar, J., & Michiels, A. (2021). Addressing the theory-practice divide in family business research: the case of shareholder agreements. Journal of Family Business Strategy, 12(1), 100395. https://doi.org/10.1016/j.jfbs.2020.100395

Bloemen-Bekx, M., Van Gils, A., Lambrechts, F., & Sharma, P. (2021). Nurturing offspring’s affective commitment through informal family governance mechanisms. Journal of Family Business Strategy, 12(2), 100309. https://doi.org/10.1016/j.jfbs.2019.100309

Brzozowski, M., & Spotton Visano, B. (2020). “Havin’ money’s not everything, not havin’ it is”: the importance of financial satisfaction for life satisfaction in financially stressed households. Journal of Happiness Studies, 21(2), 573-591. https://doi.org/10.1007/s10902-019-00091-0

Burroughs, J. E., & Rindfleisch, A. (2002). Materialism and well-being: a conflicting values perspective. Journal of Consumer Research, 29(3), 348-370. https://doi.org/10.1086/344429

Byrne, J., Fattoum, S., & Thébaud, S. (2019). A suitable boy? Gendered roles and hierarchies in family business succession. European Management Review, 16(3), 579-596. https://doi.org/10.1111/emre.12298

Cambridge Dictionary (2022). Retrieved from Cambridge Dictionary (29/11/22): https://dictionary.cambridge.org/dictionary/english/wealth

Carney, M., & Nason, R. S. (2018). Family business and the 1%. Business & Society, 57(6), 1191-1215. https://doi.org/10.1177/0007650316661165

Chrisman, J. J., Chua, J. H., & Litz, R. (2003). A unified systems perspective of family firm performance: an extension and integration. Journal of Business Venturing, 18(4), 467-472. https://doi.org/10.1016/S0883-9026(03)00055-7

Chrisman, J. J., Chua, J. H., & Zahra, S. A. (2003). Creating wealth in family firms through managing resources: comments and extensions. Entrepreneurship Theory and Practice, 27(4), 359-365. https://doi.org/10.1111/1540-8520.t01-1-00014

Chrisman, J. J., Chua, J. H., Pearson, A. W., & Barnett, T. (2012). Family involvement, family influence, and family–centered non–economic goals in small firms. Entrepreneurship Theory and Practice, 36(2), 267-293. https://doi.org/10.1111/j.1540-6520.2010.00407.x

Corbetta, G., & Amore, M. D. (2014). CEO succession mechanisms, organizational context, and performance: a socio?emotional wealth perspective on family?controlled firms. Journal of Management Studies, 51(7), 1153-1179. https://doi.org/10.1111/joms.12095

Craig, N., & Snook, S. (2014). From purpose to impact. Harvard Business Review, 92(5), 104-111. https://hbr.org/2014/05/from-purpose-to-impact

Damon, W. (2009). The path to purpose: how young people find their calling in life. Simon and Schuster, New York.

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

Diener, E., & Seligman, M. E. (2004). Beyond money: toward an economy of well-being. Psychological Science in the Public Interest, 5(1), 1-31. https://doi.org/10.1111/j.0963-7214.2004.00501001.x

Distelberg, B. J., & Schwarz, T. V. (2015). Mentoring across family-owned businesses. Family Business Review, 28(3), 193-210. https://doi.org/10.1177/0894486513511327

Dittmar, H. (1992). The social psychology of material possessions: to have is to be. New York: St. Martin Press.

Donaldson, T., & Walsh, J. P. (2015). Toward a theory of business. Research in Organizational Behavior, 35, 181-207. https://doi.org/10.1016/j.riob.2015.10.002

Eddleston, K. A., Kellermanns, F. W., & Kidwell, R. E. (2018). Managing family members: how monitoring and collaboration affect extra?role behavior in family firms. Human Resource Management, 57(5), 957-977. https://doi.org/10.1002/hrm.21825

Elsbach, K. D., & van Knippenberg, D. (2020). Creating high?impact literature reviews: an argument for ‘integrative reviews’. Journal of Management Studies, 57(6), 1277-1289. https://doi.org/10.1111/joms.12581

Enderle, G. (2009). A rich concept of wealth creation beyond profit maximization and adding value. Journal of Business Ethics, 84(3), 281-295. https://doi.org/10.1007/s10551-009-0205-y

Etzioni, A. (1991). The socio-economics of property. Journal of Social Behavior and Personality, 6(6), 465-468.

Foss, N. J., & Klein, P. G. (2018). Stakeholders and corporate social responsibility: an ownership perspective. In S. Dorobantu, R. V. Aguilera, J. Luo, & F. M. Milliken (Eds.) Sustainability, stakeholder governance, and corporate social responsibility (Advances in strategic management, 38) (pp. 17-35). Emerald Publishing Limited. https://doi.org/10.1108/S0742-332220180000038005

Foss, N. J., Klein, P. G., Lien, L. B., & Zenger, T. (2021). Ownership competence. Strategic Management Journal, 42(2), 302-328. https://doi.org/10.1002/smj.3222

Furby, L. (1980). The origins and early development of possessive behavior. Political Psychology, 2(1), 30-42. https://doi.org/10.2307/3790969

Furby, L. (1991). Understanding the psychology of possession and ownership: a personal memoir and an appraisal of our progress. Journal of Social Behavior and Personality, 6, 457–463.

Gimenez-Jimenez, D., Edelman, L. F., Minola, T., Calabrò, A., & Cassia, L. (2021). An intergeneration solidarity perspective on succession intentions in family firms. Entrepreneurship Theory and Practice, 45(4), 740-766. https://doi.org/10.1177/1042258720956384

Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J., & 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

Gómez-Mejía, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1), 653-707. https://doi.org/10.5465/19416520.2011.593320

Grote, J. (2003). Conflicting generations: a new theory of family business rivalry. Family Business Review, 16(2), 113-124. https://doi.org/10.1111/j.1741-6248.2003.00113.x

Habbershon, T. G., & Pistrui, J. (2002). Enterprising families domain: family-influenced ownership groups in pursuit of transgenerational wealth. Family Business Review, 15(3), 223-237. https://doi.org/10.1111/j.1741-6248.2002.00223.

Habbershon, T. G., Williams, M., & MacMillan, I. C. (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18(4), 451-465. https://doi.org/10.1016/S0883-9026(03)00053-3

Hagerty, M. R., & Veenhoven, R. (2003). Wealth and happiness revisited–growing national income does go with greater happiness. Social Indicators Research, 64(1), 1-27. https://doi.org/10.1023/A:1024790530822

Hammond, N. L., Pearson, A. W., & Holt, D. T. (2016). The quagmire of legacy in family firms: definition and implications of family and family firm legacy orientations. Entrepreneurship Theory and Practice, 40(6), 1209-1231. https://doi.org/10.1111/etap.12241

Haradkiewicz, J. M., & Elliot, A. J. (1998). The joint effects of target and purpose goals on intrinsic motivation: a mediational analysis. Personality and Social Psychology Bulletin, 24(7), 675-689. https://doi.org/10.1177/014616729824700

Heino, N., Tuominen, P., Tuominen, T., & Jussila, I. (2019). The socio-psychological challenges of succession in family firms: the implications of collective psychological ownership. In E. Memili, & C. Dibrell (Eds.), The Palgrave handbook of heterogeneity among family firms (pp. 715-746). Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-77676-7_26

Henssen, B., Voordeckers, W., Lambrechts, F., & Koiranen, M. (2014). The CEO autonomy–stewardship behavior relationship in family firms: the mediating role of psychological ownership. Journal of Family Business Strategy, 5(3), 312-322. https://doi.org/10.1016/j.jfbs.2014.01.012

Hirschheim, R. (2008). Some guidelines for the critical reviewing of conceptual papers. Journal of the Association for Information Systems, 9(8), 432-441. https://doi.org/10.17705/1jais.00167

Hoskisson, R. E., Chirico, F., Zyung, J., & Gambeta, E. (2017). Managerial risk taking: a multitheoretical review and future research agenda. Journal of Management, 43(1), 137-169. https://doi.org/10.1177/0149206316671583

Huang, X., Chen, L., Xu, E., Lu, F., & Tam, K. C. (2020). Shadow of the prince: parent-incumbents’ coercive control over child-successors in family organizations. Administrative Science Quarterly, 65(3), 710-750. https://doi.org/10.1177/0001839219870449

Jaakkola, E. (2020). Designing conceptual articles: four approaches. AMS Review, 10(1-2), 18-26. https://doi.org/10.1007/s13162-020-00161-0

Jantsch, A., & Veenhoven, R. (2019). Private wealth and happiness. A research synthesis using an online findings-archive. In G. Brulé, & C. Suter (Eds.), Wealth(s) and subjective well-Being (pp. 17-50). https://doi.org/10.1007/978-3-030-05535-6_2

Jaskiewicz, P., Combs, J. G., & Rau, S. B. (2015). Entrepreneurial legacy: toward a theory of how some family firms nurture transgenerational entrepreneurship. Journal of Business Venturing, 30(1), 29-49. https://doi.org/10.1016/j.jbusvent.2014.07.001

Jayantilal, S., Si?lvia Ferreira, J., & Ban?egil Palacios, T. M. (2016). Effects of sibling competition on family firm succession: a game theory approach. Journal of Family Business Strategy, 7(4), 260-268. https://doi.org/10.1016/j.jfbs.2016.10.001

Kammerlander, N. (2022). Family business and business family questions in the 21st century: who develops SEW, how do family members create value, and who belongs to the family? Journal of Family Business Strategy, 13(2), 100470. https://doi.org/10.1016/j.jfbs.2021.100470

Kasser, T., & Kanner, A. (2004). Psychology and consumer culture: the struggle for a good life in a materialistic world. Washington, DC: American Psychological Association.

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. https://doi.org/10.1111/etap.12065

Lungeanu, R., & Ward, J. L. (2012). A governance-based typology of family foundations: the effect of generation stage and governance structure on family philanthropic activities. Family Business Review, 25(4), 409-424. https://doi.org/10.1177/0894486512444603

Luthar, S. S. (2003). The culture of affluence: psychological costs of material wealth. Child Development, 74(6), 1581-1593. https://doi.org/10.1046/j.1467-8624.2003.00625.x

Michel, A., & Kammerlander, N. (2015). Trusted advisors in a family business's succession-planning process—An agency perspective. Journal of Family Business Strategy, 6(1), 45-57. https://doi.org/10.1016/j.jfbs.2014.10.005

Mustafa, M., Labaki, R., & Henssen, B. (2022). Psychological ownership in heterogeneous family firms: a promising path and a call for further investigation. Entrepreneurship Research Journal. https://doi.org/10.1515/erj-2022-0156

Narcikara, E. B. (2017). Psychological ownership in family business in the light of social identity theory. International Journal of Research in Social Sciences, 7(9), 520-545. http://www.ijmra.us

Nason, R., Mazzelli, A., & Carney, M. (2019). The ties that unbind: socialization and business-owning family reference point shift. Academy of Management Review, 44(4), 846-870. https://doi.org/10.5465/amr.2017.0289

Pierce, J. L., & Jussila, I. (2010). Collective psychological ownership within the work and organizational context: construct introduction and elaboration. Journal of Organizational Behavior, 31(6), 810-834. https://doi.org/10.1002/job.628

Pierce, J. L., Jussila, I., & Cummings, A. (2009). Psychological ownership within the job design context: revision of the job characteristics model. Journal of Organizational Behavior, 30(4), 477-496. https://doi.org/10.1002/job.550

Pierce, J. L., Kostova, T., & Dirks, K. T. (2001). Toward a theory of psychological ownership in organizations. Academy of Management Review, 26(2), 298-310. https://doi.org/10.5465/amr.2001.4378028

Pierce, J. L., Kostova, T., & Dirks, K. T. (2003). The state of psychological ownership: integrating and extending a century of research. Review of General Psychology, 7(1), 84-107. https://doi.org/10.1037/1089-2680.7.1.84

Pittino, D., Martínez, A. B., Chirico, F., & Galván, R. S. (2018). Psychological ownership, knowledge sharing and entrepreneurial orientation in family firms: the moderating role of governance heterogeneity. Journal of Business Research, 84, 312-326. https://doi.org/10.1016/j.jbusres.2017.08.014

Porto-Robles, Z., Watkins-Fassler, K., & Rodríguez-Ariza, L. (2022). From the family business to the business family: the subjective well-being approach. European Journal of Family Business, 12(1), 80-89. https://doi.org/10.24310/ejfbejfb.v12i1.13017

Ramos, H. M., Man, T. W., Mustafa, M., & Ng, Z. Z. (2014). Psychological ownership in small family firms: family and non-family employees’ work attitudes and behaviours. Journal of Family Business Strategy, 5(3), 300-311. https://doi.org/10.1016/j.jfbs.2014.04.001

Rantanen, N. J. (2011). F-CPO: a collective psychological ownership approach to capturing realized family influence on business. Journal of Family Business Strategy, 2(3), 139-150. https://doi.org/10.1016/j.jfbs.2011.07.005

Rivo-López, E., Villanueva-Villar, M., Suárez-Blázquez, G., & Reyes-Santías, F. (2020). How does a business family manage its wealth? A family office perspective. Journal of Family Business Management, 11(4), 496-511. https://doi.org/10.1108/JFBM-03-2020-0021

Rudmin, F. W. (1990). The economic psychology of Leon Litwinski (1887-1969): a program of cognitive research on possession and property. Journal of Economic Psychology, 11(3), 307-339. https://doi.org/10.1016/0167-4870(90)90016-3

Rudmin, F. W. (1991). "To own is to be perceived to own": a social cognitive look at the ownership of property. Journal of Social Behavior and Personality, 6(6), 85-104.

Rudmin, F. W., & Berry, J. W. (1987). Semantics of ownership: a free-recall study of property. Psychological Record, 37, 257–268. https://doi.org/10.1007/BF03394988

Salvato, C., & Corbetta, G. (2013). Transitional leadership of advisors as a facilitator of successors’ leadership construction. Family Business Review, 26(3), 235-255. https://doi.org/10.1177/0894486513490796

Santiago, A. L. (2011). The family in family business: case of the in-laws in Philippine businesses. Family Business Review, 24(4), 343-361. https://doi.org/10.1177/0894486511419294

Savolaine, J., & Granello, P. F. (2002). The function of meaning and purpose for individual wellness. The Journal of Humanistic Counseling, Education and Development, 41(2), 178-189. https://doi.org/10.1002/j.2164-490X.2002.tb00141.x

Schickinger, A., Bierl, P. A., Leitterstorf, M. P., & Kammerlander, N. (2021). Family-related goals, entrepreneurial investment behavior, and governance mechanisms of single family offices: an exploratory study. Journal of Family Business Strategy, 100393. https://doi.org/10.1016/j.jfbs.2020.100393

Seligman, M. (2002). Authentic happiness: using the new positive psychology to realize your potential for lasting fulfillment. New York: Free Press.

Sharma, P., Chrisman, J. J., & Chua, J. H. (1997). Strategic management of the family business: past research and future challenges. Family Business Review, 10(1), 1-35. https://doi.org/10.1111/j.1741-6248.1997.00001

Sharma, P., & Sharma, S. (2011). Drivers of proactive environmental strategy in family firms. Business Ethics Quarterly, 21(2), 309-334. https://doi.org/10.5840/beq201121218

Sirmon, D. G., & Hitt, M. A. (2003). Managing resources: linking unique resources, management, and wealth creation in family firms. Entrepreneurship Theory and Practice, 27(4), 339-358. https://doi.org/10.1111/1540-8520.t01-1-00013

Snyder, H. (2019). Literature review as a research methodology: an overview and guidelines. Journal of Business Research, 104, 333-339. https://doi.org/10.1016/j.jbusres.2019.07.039

Steier, L. P., Chrisman, J. J., & Chua, J. H. (2015). Governance challenges in family businesses and business families. Entrepreneurship Theory and Practice, 39(6), 1265-1280. https://doi.org/10.1111/etap.12180

Swab, R. G., Sherlock, C., Markin, E., & Dibrell, C. (2020). “SEW” what do we know and where do we go? A review of socioemotional wealth and a way forward. Family Business Review, 33(4), 424-445. https://doi.org/10.1177/089448652096193

Van der Heyden, L., Blondel, C., & Carlock, R. S. (2005). Fair process: striving for justice in family business. Family Business Review, 18(1), 1-21. https://doi.org/10.1111/j.1741-6248.2005.00027.

Vazquez, P. (2018). Family business ethics: at the crossroads of business ethics and family business. Journal of Business Ethics, 150(3), 691-709. https://doi.org/10.1007/s10551-016-3171-1

Vazquez, P., & Rocha, H. (2018). On the goals of family firms: a review and integration. Journal of Family Business Strategy, 9(2), 94-106. https://doi.org/10.1016/j.jfbs.2018.02.002

Vázquez, P., Gómez-Mejía, L., & Molina, M. (2021). Job, career, and calling of the next generation of the family firm: a Latin American perspective. In J. Trullen, & J. Bonache (Eds.), Talent management in Latin America (pp. 63-77). Routledge. https://doi.org/10.4324/9781003015918

Williams, R. I., Pieper, T. M., Kellermanns, F. W., & Astrachan, J. H. (2019). Family business goal formation: a literature review and discussion of alternative algorithms. Management Review Quarterly, 69(3), 329-349. https://doi.org/10.1007/s11301-019-00155-8

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

Zheng, V. (2002). Inheritance, Chinese family business and economic development in Hong Kong. Journal of Enterprising Culture, 10, 287-312. https://doi.org/10.1142/S0218495802000049