An institutional perspective of the socioemotional-financial wealth relationship: Commentary on Martin and Gomez-Mejia's "The relationship between socioemotional and financial wealth: re-visiting family firm decision making". (21st November 2016)

• Record Type: Journal Article
• Authors: Duran, Patricio
• Is Part Of: Management research. Volume 14:Number 3(2016)
• Page Start: 258
• Page End: 266
• Publication Date: 2016-11-21
• Subjects: Family firms -- Institutions -- Firm performance -- Socioemotional wealth; Management -- Periodicals; 658
• DOI: 10.1108/MRJIAM-06-2016-0669
• Languages: English
• ISSNs: 1536-5433

Abstract

Abstract : Purpose: The purpose of this paper is to offer an institutional perspective of the Martin and Gomez-Mejia model. Specifically, this paper offers arguments of how institutions moderate the socioemotional wealth (SEW) and financial performance relationship. Design/methodology/approach: This is an individual commentary that explores country-level institutional contingencies that affect the predicted effect of SEW dimensions upon financial performance offered by Martin and Gomez-Mejia. Findings: The paper offers arguments of how both formal and informal institutions, such as the legal protection of minority shareholders, labor and investors; freedom of expression and information; and the country's culture, exacerbate or ameliorate the predicted effect of the five SEW dimensions upon financial performance. Originality/value: By exploring an institutional perspective of the socioemotional and financial wealth relationship, this commentary offers additional boundary conditions to those offered by Martin and Gomez-Mejia to further refine their theory.