TY - JOUR
T1 - Antecedents and outcomes of bifurcated compensation in family firms
T2 - A multilevel view
AU - Samara, Georges
AU - Jamali, Dima
AU - Parada, M.
N1 - Publisher Copyright:
© 2019 Elsevier Inc.
PY - 2021/3
Y1 - 2021/3
N2 - Through a multilevel view, this article challenges the dominant assumption in the literature suggesting that family employees will receive more compensation than their non-family peers, which will violate the latter group justice perceptions and will lead them to lower their inputs to retrieve equity. We start by discussing how competing socioemotional priorities combine with the degree of collectivism at the societal level to affect which group will bifurcated compensation favor. We suggest that embeddedness in a collectivist culture will generate a strong desire and a moral obligation to cater to the financial well-being of family members, hence leading to bifurcated compensation favoring family employees. In individualist cultures, however, the family will accord high importance to achieving family prominence, which leads to bifurcated compensation favoring non-family employees. Moving forward, we discuss how nepotism types shape the effect of bifurcated compensation on the under-privileged group work inputs and how this relationship is moderated by the extent of power distance embedded in society. Theoretical and empirical implications are discussed at the end of the paper.
AB - Through a multilevel view, this article challenges the dominant assumption in the literature suggesting that family employees will receive more compensation than their non-family peers, which will violate the latter group justice perceptions and will lead them to lower their inputs to retrieve equity. We start by discussing how competing socioemotional priorities combine with the degree of collectivism at the societal level to affect which group will bifurcated compensation favor. We suggest that embeddedness in a collectivist culture will generate a strong desire and a moral obligation to cater to the financial well-being of family members, hence leading to bifurcated compensation favoring family employees. In individualist cultures, however, the family will accord high importance to achieving family prominence, which leads to bifurcated compensation favoring non-family employees. Moving forward, we discuss how nepotism types shape the effect of bifurcated compensation on the under-privileged group work inputs and how this relationship is moderated by the extent of power distance embedded in society. Theoretical and empirical implications are discussed at the end of the paper.
KW - Bifurcated compensation
KW - Bifurcation bias
KW - Family business
KW - National culture
KW - Socioemotional wealth importance
UR - http://www.scopus.com/inward/record.url?scp=85073749702&partnerID=8YFLogxK
U2 - 10.1016/j.hrmr.2019.100728
DO - 10.1016/j.hrmr.2019.100728
M3 - Article
AN - SCOPUS:85073749702
SN - 1053-4822
VL - 31
JO - Human Resource Management Review
JF - Human Resource Management Review
IS - 1
M1 - 100728
ER -