Socio‐Emotional Wealth Separation and Decision‐Making Quality in Family Firm TMTs: The Moderating Role of Psychological Safety

29 Pages Posted: 11 May 2018

See all articles by Pieter Vandekerkhof

Pieter Vandekerkhof

Hasselt University

Tensie Steijvers

Hasselt University; Research Foundation Flanders

Walter Hendriks

Hasselt University - KIZOK Research Centre

Wim Voordeckers

Hasselt University - Faculty of Business Administration

Date Written: June 2018

Abstract

Socio‐emotional wealth (SEW), defined as the firm's non‐financial aspects meeting the family's affective needs, has become the dominant paradigm in family firm research. Recent debate acknowledges potential SEW heterogeneity within family firms. This study considers the effect of polarizing opinions on SEW preservation among TMT members as a source of separation in the TMT. More concretely, we study the effect of SEW separation on TMT decision‐making quality, while taking into consideration behavioural integration as a team process and psychological safety as a team context. Based on a unique multiple respondent sample of 300 managers from 55 Belgian private family firms, we find that behavioural integration mediates the negative effect of SEW separation on TMT decision‐making quality. In addition, we find that the negative effect of SEW separation on behavioural integration is mitigated by psychological safety and even turns into a positive effect at high levels of psychological safety.

Keywords: behavioural integration, psychological safety, separation, socio‐emotional wealth, top management teams

Suggested Citation

Vandekerkhof, Pieter and Steijvers, Tensie and Hendriks, Walter and Voordeckers, Wim, Socio‐Emotional Wealth Separation and Decision‐Making Quality in Family Firm TMTs: The Moderating Role of Psychological Safety (June 2018). Journal of Management Studies, Vol. 55, Issue 4, pp. 648-676, 2018. Available at SSRN: https://ssrn.com/abstract=3176780 or http://dx.doi.org/10.1111/joms.12277

Pieter Vandekerkhof (Contact Author)

Hasselt University

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

Tensie Steijvers

Hasselt University ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

Research Foundation Flanders ( email )

Egmontstraat 5
Brussels, 1000
Belgium

Walter Hendriks

Hasselt University - KIZOK Research Centre

Agoralaan, Building D
Diepenbeek, 3590
Belgium

Wim Voordeckers

Hasselt University - Faculty of Business Administration ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

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