The Family Firm as an Inter - Institutional System: New Venture Creation in Indian Family Firms

Posted: 6 Sep 2017

See all articles by Joseph Lampel

Joseph Lampel

City University London - The Business School

A. Bhalla

Cass Business School, City, University of London; affiliation not provided to SSRN

K. Ramachandran

Indian School of Business (ISB), Hyderabad

Date Written: October 22, 2011

Abstract

This paper advances the nascent literature on institutional logics by outlining the theory of family firm as an inter-institutional system. We specifically examine justifying family logic for the decision to allocate resources for a new venture in a family firm. Using case studies of thirty-six NVs in eight Indian family firms at different stages of evolution our findings suggest that within family firms, resource allocation to new ventures requires justification fitting the family’s Economic, Expertise, Reputation and Attachment (EERA) logic. We propose that the family EERA logic enables family members acting as NV champions to more openly frame NV opportunities in terms of their personal preferences than non-family managers. When screening these NV opportunities, family firms are also more likely to compromise on economic criteria and give preference to nurturing family expertise and attachment logic. Family members acting as NV champions are also under lesser constraints to justify NV performance-corporate alignment to secure additional resources at implementation stage.

Keywords: Entrepreneurship, Case study, Institutional theory, Qualitative research design, Entrepreneurship processes

Suggested Citation

Lampel, Joseph and Bhalla, Ajay and Bhalla, Ajay and Ramachandran, K., The Family Firm as an Inter - Institutional System: New Venture Creation in Indian Family Firms (October 22, 2011). Indian School of Business WP 3031715, Available at SSRN: https://ssrn.com/abstract=3031715

Joseph Lampel (Contact Author)

City University London - The Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
44 (0)20 7040 8669 (Phone)

Ajay Bhalla

Cass Business School, City, University of London ( email )

106 Bunhill Row
London, London EC1Y 8TZ
United Kingdom

affiliation not provided to SSRN

K. Ramachandran

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

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