The Persistence of Family Firms: How Does Performance Threshold Affect Family Firm Exit?

Small Business Economics, Forthcoming

31 Pages Posted: 8 Apr 2021

See all articles by Noni Symeonidou

Noni Symeonidou

University of Warwick

Dawn R. DeTienne

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

Francesco Chirico

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

Date Written: March 6, 2021

Abstract

Research on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1,191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.

Suggested Citation

Symeonidou, Noni and DeTienne, Dawn R. and Chirico, Francesco and Chirico, Francesco, The Persistence of Family Firms: How Does Performance Threshold Affect Family Firm Exit? (March 6, 2021). Small Business Economics, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3798965

Noni Symeonidou

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

Dawn R. DeTienne

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 (Contact Author)

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

Jönköping, 55111
Sweden

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

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