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A high level of trust within a small elite may, like a low level of trust in society at large, be a serious impediment to economic development. This is because such concentrated high trust among the elite promotes political rent seeking, known to retard growth. We propose that entrusting the governance of a country's great corporations to a few wealthy(More)
Using insights from the resource-based view, social capital, and network theories, the authors develop a model of how family social capital, as well as an entrepreneur's knowledge capital and external social capital, influences the venture creation process. The model is tested on a sample of 85 nascent Hispanic entrepreneurs. Results indicate that family(More)
of Small Business and Entrepreneurship, has three specific objectives. The first is to provide a review of the most important contributions to the field with respect to progress in the development of a theory of the family firm. The second is to discuss the most important directions for future research with respect to the same end. The third is to make a(More)
F amily firms are thought to pursue nonfinancial goals that provide socioemotional wealth, but socioemotional wealth is feasible only with family control of the firm. Using prospect theory, we hypothesize that socioemotional wealth increases with the extent of current control, duration of control, and intentions for transgenerational control, thus adding to(More)
family managers, family firms, and the winner's curse: The influence of non-economic goals and bounded rationality. Abstract: We explain why family-centered noneconomic goals and bounded rationality decrease the willingness and ability of small-and medium-sized family firms to hire and provide competitive compensation to nonfamily managers even in a labor(More)
Corporate social responsibility is incorporated into strategic management at the enterprise strategy level. This paper delineates the domain of enterprise strategy by focusing on how well a firm's social performance matches its competences and stakeholders rather than on the "quantity" of a firm's social responsibility. Enterprise strategy is defined and a(More)
1 We show that agency problems exist in the family firm although ownership and management are not separated. This is counter to the common belief in the finance literature that agency costs do not exist in the owner-managed firm. Altruism may exacerbate the shirking problem but mitigates an adverse selection problem. in firms where ownership and management(More)
The propensity to use non-family managers' incentive compensation in small and medium size family firms. Abstract: Purpose – The purpose of this paper is to use the socio‐emotional wealth perspective to examine how the level of family involvement reduces the propensity to use incentives to non‐family managers in small to medium‐sized enterprises (SME)(More)
Entrepreneurship scholars tend to discuss the merits of using innovation over imitation for the creation of new ventures. We take a step forward to focus our attention on the drivers of successful entrepreneurial firms and use Inc. 500 companies to test our framework. Findings indicate that the extent of innovation positively influences long-term sales(More)
Our article examines the assumption that family firms are an inferior organizational form as compared to non-family firms by analyzing family firms' professionalization in developed and developing economies. We use institutional theory and resource-based view frameworks to analyze how environmental factors may affect the antecedents and consequences of(More)