Abstract
We contribute to the theoretical depiction of family firms' reactions during a downturn by adopting the ability and willingness approach. Specifically, we suggest that the combination of the ability and the willingness to pursue family-centered noneconomic (FCNE) goals makes family firms less likely to engage in restructuring activities and more likely to engage in an escalation of commitment. Moreover, we further investigate the family firms' heterogeneity and introduce the idea that the willingness of family firms to pursue FCNE goals may be influenced by the geographical context and the generational stage of the enterprising family.