Abstract

Family firms often face a tension between pursuing growth oriented strategies (i.e. business logic) or strategies that benefit family owners (i.e. family logic). This creates multiple challenges, especially when family firms are new ventures seeking resources. Negative perceptions held by external stakeholders (e.g. professional investors and non-family top executives) likely make it difficult for family-founded new ventures to obtain resources. Nonetheless, many successful examples exist of family firms that have successfully acquired substantial resources, particularly amongst technology ventures (e.g. VMware, Eventbrite, Evernote, etc). Yet, little theory examines how these ventures acquire resources while managing the tension inherent to family firms. Therefore, in the context of technology ventures, we ask the following: How does a family technology venture manage the tension between family and business logics in order to obtain resources (financial, social, and human capital)?

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