Narrow-Framing and Risk Preferences in Family and Non-Family Firms
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Esra Memili, Associate Professor of Entrepreneurship (Creator)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: Building upon prospect theory’s concept of narrow-framing, we explore family firms’ risk preferences across multiple decisions in corporate entrepreneurship. We argue that family firms’ decisions are less likely to be narrowly framed (more likely to be made as a group rather than in isolation) compared to non-family firms. Examining the interaction between two risky decisions (internationalization and R&D investment) in two samples of publicly traded firms in the USA and China confirms our hypotheses. Family firms appear more likely than non-family firms to diversify risk when making multiple decisions concerning corporate entrepreneurship. However, given inferior performance, risk taking across multiple decisions in family firms is positively related.
Narrow-Framing and Risk Preferences in Family and Non-Family Firms
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Created on 6/10/2022
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Additional Information
- Publication
- Journal of Management Studies, 58(1), 201-235. https://doi.org/10.1111/joms.12671
- Language: English
- Date: 2021
- Keywords
- corporate entrepreneurship, family business, narrow-framing, risk management