The Next Generation in Family Firms and External Corporate Venturing: The Mixed Role of SEW

Abstract

We examine the willingness of members of the next generation in family firms to engage in external corporate venturing by means of cooperation with start-ups. Our research setting is the next generation, i.e. family-internal successors, in German family firms with the digitalization as important contextual dimension. Analyzing a unique data set of 347 members of the next generation, we find that in general a low ability for internal corporate venturing due to perceived resource restrictions is linked to a high willingness for external corporate venturing. Interestingly, this link is impacted differently by different dimensions of socioemotional wealth: while the SEW dimension R (renewal of family bonds through dynastic succession) positively moderates the ability-willingness-link, E (emotional attachment of family members) negatively moderates this relationship. Additionally, the SEW dimension I (identification with the family firm) shows a negative influence on the willingness of members of the next generation to cooperate with start-ups.