Download the latest and most demanded article: #openaccess article at: https://doi.org/10.1016/j.jfbs.2022.100551
The paradoxical nature of Latin America and the Caribbean (LAC) presents a fertile ground for advancing management theory that applies to Africa, the Middle East, and Asia. Through the lens of the dominant Socioemotional Wealth (SEW) framework, we describe how LAC’s unique context shapes business families and decision-making processes:
🔘Extended Family Dynamics: The extended family concept prevalent in LAC enriches the SEW perspective by intensifying the preservation and enhancement of socioemotional wealth within business families. This “SEW intensity” fosters a unique decision-making and risk management approach.
🔘VUCA Environment: LAC’s volatile, uncertain, complex, and ambiguous (VUCA) environment heightens business families’ sensitivity to external factors impacting their SEW. This “SEW sensitivity” dictates firms’ responsiveness, influencing how they navigate performance hazards and venture into new risks.
🔘Global Relevance: The shared characteristics of extended family structures and VUCA environments across these regions underline the universal applicability of our propositions.
🔘Theory & Research Implications: Our work advances management theory by challenging existing assumptions and paves the way for future empirical research. The LAC context catalyzes rethinking family business strategies and decision-making frameworks on a global scale.
Let’s leverage the distinctive aspects of the LAC region to enrich our understanding and practice of management theory worldwide.
