Exit Strategies in Family Firms: How Socioemotional Wealth Drives the Threshold of Performance

Entrepreneurship Theory and Practice, November 2013, DOI: 10.1111/etap.12067

38 Pages Posted: 9 Oct 2014 Last revised: 6 Feb 2020

See all articles by Dawn R. DeTienne

Dawn R. DeTienne

Colorado State University, Fort Collins - College of Business; Utah State University

Francesco Chirico

Macquarie University, Macquarie Business School; Jonkoping University - Jonkoping International Business School (JIBS)

Multiple version iconThere are 2 versions of this paper

Date Written: 2013

Abstract

Although research has shown the ability to exit from both successful and unsuccessful ventures is important to founders, families, firms, industries, and overall economic health, exiting from a family firm can be especially challenging. In this paper, we examine exit strategies in the context of the family firm and the family firm portfolio. Drawing upon threshold theory and the socioemotional wealth perspective, we develop a model that provides guiding theoretical explanations for exit strategies. We address two questions: (1) why do family owners develop specific exit strategies, and (2) how do these strategies differ within family firms and family firm portfolios? In doing so, we contribute to family business, portfolio entrepreneurship, and exit literatures.

Keywords: Entrepreneurial Exit, Family Firm, Socioemotional Wealth, Sale, Liquidation, Succession

Suggested Citation

DeTienne, Dawn R. and Chirico, Francesco, Exit Strategies in Family Firms: How Socioemotional Wealth Drives the Threshold of Performance (2013). Entrepreneurship Theory and Practice, November 2013, DOI: 10.1111/etap.12067, Available at SSRN: https://ssrn.com/abstract=2506926

Dawn R. DeTienne (Contact Author)

Colorado State University, Fort Collins - College of Business ( email )

Fort Collins, CO 80523
United States

Utah State University

Logan, UT 84322
United States

Francesco Chirico

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

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