Risk abatement as a strategy for R&D investments in family firms

• 成果类型: Article
• 署名作者: Patel, Pankaj C.; Chrisman, James J.
• 署名单位: Ball State University; Mississippi State University; University of Alberta
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2119
• 发表日期: 2014
• 页码: 617-627
• 关键词: Risk abatement; behavioral agency theory; R&D investment; Family firms

摘要

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. Copyright (c) 2013 John Wiley & Sons, Ltd.