Abstract
With increasing competition, diversity, and dynamic market environment, family firms need better entrepreneurial
mind-sets to tackle all catastrophic situations. The requirement for family firms’ survival and growth ends to business
diversification. Much has been discussed about the pros and cons of family control and family identity. However, the
literature is naive in probing the combined effect of family control, family identity, and a moderating effect of affiliate
directors on the firm’s diversification. Using a socioemotional wealth perspective, our study examines diversification
decisions, the one considered as a major decision in making firms as corporate entrepreneurial under family firms. The
data is collected from Pakistani family firms operating in the manufacturing sector. The results prove that family
control has a direct effect on a firm’s diversification and the presence of affiliate directors moderate the relationship
between family control, family identity, and a firms’ diversification. Our study has recommended future research
avenues for family-owned enterprises.
Irfan Siddique, Irfan Saleem, Aqeel Ahmed. (2019) When does the Affiliate Director Matter More for Family Firms? , Paradigms , Vol 13, Issue 1.
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