Family Values and Inter-Institutional Governance of Strategic Decision Making in Indian Family Firms

In this paper we use new venture creation in Indian family firms to explore the family firm as an inter-institutional system. We argue that in societies where the traditional family dominates social and economic life, the relationship between the two institutions, the firm and the family, is managed via inter-institutional logics. These inter-institutional logics help reconcile the tensions that often arise in the family firms during strategic decision-making. We use archival and interview data on thirty-six new ventures in eight Indian family firms to identify these logics. Our analysis shows that the interaction between firm and family institutional logics in Indian family firms generates four sub-logics: Economic, Expertise, Reputation and Attachment. These four logics are used to frame and screen new venture opportunities and justify resource allocation

Do we really want to cut out the deadwood?: Family-centered noneconomic goals, restructuring aversion, and escalation of commitment

We contribute to the theoretical depiction of family firms\u2019 reactions during a downturn by adopting the ability and willingness approach. Specifically, we suggest that the combination of the ability and the willingness to pursue family-centered noneconomic (FCNE) goals makes family firms less likely to engage in restructuring activities and more likely to engage in an escalation of commitment. Moreover, we further investigate the family firms\u2019 heterogeneity and introduce the idea that the willingness of family firms to pursue FCNE goals may be influenced by the geographical context and the generational stage of the enterprising family