Risk abatement as a strategy for R&D investments in family firms (pages 617�627)

• Autores: Pankaj C. Patel, James J. Chrisman
• Localización: Strategic management journal, ISSN 0143-2095, Vol. 35, Nº 4, 2014, págs. 617-627
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Dialnet Métricas: 8 Citas
• Resumen

  • The behavioral agency model suggests family firms invest less in R&D than nonfamily firms to protect their socioemotional wealth. Studies support this contention but do not explain how family firms make R&D investments. We hypothesize that when performance exceeds aspirations, family firms manage socioemotional and economic objectives by making exploitative R&D investments that lead to more reliable and less risky sales levels. However, performance below aspirations leads to exploratory R&D investments that result in potentially higher but less reliable sales levels. Using a risk abatement model, our analyses of 847 firms over 10?years supports our hypotheses.