If We Can’T Have it, then No One Should: Shutting Down Versus Selling in Family Business Portfolios

Strategic Entrepreneurship Journal, (Forthcoming)

48 Pages Posted: 14 Dec 2016

See all articles by Naveed Akhter

Naveed Akhter

Jonkoping University - Jonkoping International Business School (JIBS)

Philipp Sieger

University of Bern

Francesco Chirico

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

Date Written: December 13, 2016

Abstract

How does a business family manage its business portfolio in times of declining performance to sustain the portfolio’s long-term endurance? Drawing on social identity theory and six family business portfolios from Pakistan, we find that business families may prefer to shut down a satellite business rather than sell it, which is primarily driven by identity considerations. In addition, the family’s goal to recycle the assets, the aim to restart the business later, and the increasing decline in performance are important contingency factors. This study contributes to the literature on portfolio entrepreneurship, business exit, and the enduring entrepreneurship of family firms

Suggested Citation

Akhter, Naveed and Sieger, Philipp and Chirico, Francesco, If We Can’T Have it, then No One Should: Shutting Down Versus Selling in Family Business Portfolios (December 13, 2016). Strategic Entrepreneurship Journal, (Forthcoming), Available at SSRN: https://ssrn.com/abstract=2885047

Naveed Akhter

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

Jönköping, 55111
Sweden

Philipp Sieger

University of Bern ( email )

Gesellschaftsstrasse 49
Bern, BERN 3001
Switzerland

Francesco Chirico (Contact Author)

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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