Exploring family business decline with socioemotional wealth perspective

Abstract

The purpose of this paper is to determine how family and business priorities influence organisational decline and turnaround in a family business. Design/methodology/approach – Following critical realism as philosophical orientation, this research is based on an exploratory single case study. Findings–Thisresearchidentifiedspecificsocioemotionalwealthprioritiesdrivingthisorganisationdecline andturnaround.Thestudyalsodeterminedhowthefamilyandbusinessdynamicleadstodecisionsthatfirst trigger the organisational decline and then explain the successful implementation of turnaround strategies. Research limitation/implications – Findings of this research provide limited and contingent theoretical generalisation. Accordingly, replication and further quantitative research is required for a better understanding of this phenomenon. Practical implications – Managers can benefit from this paper by noting which behaviour could lead to organisational decline and which factors could lead to a turnaround. Similarly, managers can learn about the importance of the alignment of socioemotional wealth priorities as a critical response factor to determine whether to follow exit strategies or turnaround (succession) actions. Originality value – The study contributes to the organisational decline literature and family business literature. It advances the understanding of how family businesses should balance family and business prioritiestoavoidorganisationaldeclineandidentifystrategiessuccessfullyimplementedforturningaround