Abstract

ABSTRACT Based on organizational commitment theory, we explain how childhood exposure to the family firm (CEFF) impacts shareholders’ affective commitment (AC) to the firm in later life. After we demonstrate how this AC mediates the relationship between shareholders’ transgenerational orientation (TGO) and CEFF, we investigate the two factors moderating this mediation relationship: shareholders’ non-manager status and material expectations from the firm. By utilizing a unique sample of 217 family firm shareholders from 174 family firms and a conditional process modeling analysis, we demonstrate that the AC mediates the relationship between CEFF and TGO. Accounting for differing manifestations of AC, this mediation effect only exists for non-managing shareholders and becomes weaker as non-managing shareholders’ material expectations increase.

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