RT Article
T1 In the aftermath of an ethical violation: do family firms suffer more than non-family firms and why?
JF Journal of business ethics
VO 198
IS 4
SP 813
OP 840
A1 Nyffenegger, Bettina
A1 Madison, Kristen
A1 Lude, Maximilian Joachim 1989-
A1 Prügl, Reinhard 1976-
A1 Hack, Andreas
A2 Madison, Kristen
A2 Lude, Maximilian Joachim 1989-
A2 Prügl, Reinhard 1976-
A2 Hack, Andreas
LA English
YR 2025
UL https://ixtheo.de/Record/1925604829
AB Research indicates that family firms often engender a sense of trustworthiness among stakeholders. However, little is known as to whether this trustworthiness is beneficial or detrimental to family firms in the face of an ethical scandal. Ethical transgressions can profoundly undermine stakeholders' perceptions of a firm’s integrity and benevolence. Our research examines how stakeholders perceive and react to ethical transgressions committed by family firms, as compared to those committed by non-family firms. Drawing upon expectancy violations theory and social identity theory, we theorize that while family firms inherently enjoy a higher degree of trustworthiness, they suffer significantly more in the aftermath of an ethical transgression. Two scenario-based experimental studies support our theorizing, demonstrating that family firms experience a steeper decline in trustworthiness following an ethical transgression than do non-family firms. We uncover the psychological processes behind this finding, revealing that this vulnerability is attributed to heightened stakeholder expectations and pronounced identification with family firms. We empirically show that expectancy violations primarily diminish integrity perceptions, while identity threats degrade benevolence perceptions of family firms. This research broadens the understanding of ethics in family firms, highlighting how their initially perceived trustworthiness may become a double-edged sword during ethical crises.
K1 Benevolence
K1 Business Ethics
K1 Ethical transgression
K1 Expectancy violation
K1 Family Business
K1 Family firm versus non-family firm
K1 Goodwill-based trustworthiness
K1 Identity threat
K1 Information Ethics
K1 Integrity
K1 Meta-Ethics
K1 Normative Ethics
K1 Research Ethics
K1 Aufsatz in Zeitschrift
DO 10.1007/s10551-025-05938-6