How Family Management and Firm Age Influence a Firm’s Diversification Choices

Abstract

From the socioemotional wealth and temporal perspectives, we examine how family management and firm age influence a firm's choices between product diversification and international diversification. We hypothesize that family management is positively related to the preference for product diversification over international diversification and that the positive relationship becomes stronger among older firms. Our projections receive support from dynamic panel analyses of a sample of 422 manufacturing firms from the S&P 1,500 using the system generalized method of moments (GMM) approach. Our findings suggest that family management's tendencies to preserve SEW lead to a stronger preference towards product diversification over time.

Department(s)

Business and Information Technology

International Standard Serial Number (ISSN)

2151-6561; 0065-0668

Document Type

Article - Conference proceedings

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2025 Academy of Management, All rights reserved.

Publication Date

01 Jan 2025

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