Skip to main content
SpringerLink
Log in

To Sell or Not to Sell? The Financial and Socio-emotional Dilemma of the Ownership Decision in the Family Business

  • Chapter
  • First Online:
International Fragmentation

Part of the book series: International Marketing and Management Research ((INMAMAR))

Abstract

The case illustrates the process and challenges of ownership decision-making in a multigenerational family business where family and business logics collide. It is designed to help recognize the role of identity, emotions, and conflicting interests in shaping family business decisions. By exploring the family business from these perspectives, the students and practitioners are first asked to analyze the roles and expectations of a heterogeneous group of family shareholders. Then, they are invited to make recommendations that allow for sustaining both the family health and the business wealth in terms of financial and socio-emotional value to the family business.

The case develops along the following questions:

  1. 1.

    The Dilemma: Why is it difficult for the shareholders to agree on whether to sell the encyclopedia business or not?

  2. 2.

    The Family Business Specificities: In what way does the fact that Blockmouse Publishing is a family business impact the decision of the potential sale?

  3. 3.

    From Research Findings to Action: What would be your recommendations regarding the sales decision of the encyclopedia branch and why?

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References/Recommended Readings

  • Astrachan, J. H., & Jaskiewicz, P. (2008). Emotional returns and emotional costs in privately held family businesses: Advancing traditional business valuation. Family Business Review, 21(2), 139–149.

    Article  Google Scholar 

  • Gomez-Mejia, L. R., Haynes, K. T., Nunez-Nickel, M., Jacobson, K. J. L., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1), 106–137.

    Google Scholar 

  • Habbershon, T. G., & Williams, M. L. (1999). A resource-based framework for assessing the strategic advantages of family firms. Family Business Review, 12(1), 1–25.

    Article  Google Scholar 

  • Hirigoyen, G., & Labaki, R. (2012). The role of regret in the owner-manager decision-making in the family business: A conceptual approach. Journal of Family Business Strategy, 3(2), 118–126.

    Article  Google Scholar 

  • Hoy, F., & Sharma, P. (2010). Entrepreneurial family firms. Upper Saddle River: Prentice Hall.

    Google Scholar 

  • Michael-Tsabari, N., Labaki, R., & Zachary, R. K. (2014). Toward the cluster model: The family firm’s entrepreneurial behavior over generations. Family Business Review, 27(2), 161–185.

    Article  Google Scholar 

  • Mustakallio, M., Autio, E., & Zahra, S. A. (2002). Relational and contractual governance in family firms: Effects on strategic decision making. Family Business Review, 15(3), 205–222.

    Article  Google Scholar 

  • Sharma, P., Blunden, R., Labaki, R., Michael-Tsabari, N., & Rivera Algarin, J. O. (2013). Analyzing family business cases: Tools and techniques. Case Research Journal, 33(2), 113–132.

    Google Scholar 

  • Sundaramurthy, C., & Kreiner, G. E. (2008). Governing by managing identity boundaries: The case of family businesses. Entrepreneurship: Theory & Practice, 32(3), 415–436.

    Google Scholar 

  • Tagiuri, R., & Davis, J. (1996). Bivalent attributes of the family firm. Family Business Review, 9(2), 199–208.

    Article  Google Scholar 

  • Zellweger, T. M., & Astrachan, J. H. (2008). On the emotional value of owning a firm. Family Business Review, 21(4), 347–363.

    Article  Google Scholar 

  • Zellweger, T., & Dehlen, T. (2011). Value is in the eye of the owner: Affect infusion and socioemotional wealth among family firm owners. Family Business Review, 25(3), 280–297.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. EDHEC Business School - Family Business Center, Lille, France

    Fabian Bernhard

  2. IAE Bordeaux - Ecole Universitaire de Management, Bordeaux, France

    Rania Labaki

Authors
  1. Fabian Bernhard
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rania Labaki
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Savannah State University , SAVANNAH, Georgia, USA

    Anshu Saxena Arora

  2. ISC Paris Business School , Poissy, France

    Sabine Bacouel-Jentjens

Rights and permissions

Reprints and permissions

Copyright information

© 2016 The Author(s)

About this chapter

Cite this chapter

Bernhard, F., Labaki, R. (2016). To Sell or Not to Sell? The Financial and Socio-emotional Dilemma of the Ownership Decision in the Family Business. In: Arora, A., Bacouel-Jentjens, S. (eds) International Fragmentation. International Marketing and Management Research. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-33846-0_8

Download citation

Publish with us

Policies and ethics

Search

Navigation