Abstract
How do owners of family firm portfolios restructure poorly performing firms? Drawing upon the socio-emotional wealth perspective and escalation commitment literature, we suggest that family firm owners initially retain poorly performing portfolio firms to safeguard firm-level SEW and restructure these portfolio firms by investing and reshuffling. Yet, when the existence of their remaining firm portfolio and thus portfolio-level SEW is threatened by retaining portfolio firms, family firm owners divest preferably via sale as an ongoing concern and if unsuccessful, via liquidation. Based on these findings, this study contributes to the literature on SEW, restructuring and especially divestment research in the context of portfolio entrepreneurship.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
