Skip to main content Accessibility help
×
Home
Hostname: page-component-768dbb666b-l8xdn Total loading time: 0.703 Render date: 2023-02-07T05:23:10.469Z Has data issue: true Feature Flags: { "useRatesEcommerce": false } hasContentIssue true

Deconstructing Socioemotional Wealth: Social Wealth and Emotional Wealth as Core Properties of Family Firms

Published online by Cambridge University Press:  06 April 2022

Wenting Chen
Affiliation:
Dongbei University of Finance and Economics, China
Abby Jingzi Zhou
Affiliation:
The University of Nottingham Ningbo China, China
Steven Shijin Zhou*
Affiliation:
The University of Nottingham Ningbo China, China
Peter S. Hofman
Affiliation:
The University of Nottingham Ningbo China, China
Xueru Yang
Affiliation:
South China Agricultural University, China
*
Corresponding author: Steven Shijin Zhou (steven.zhou@nottingham.edu.cn)

Abstract

The concept of socioemotional wealth (SEW) has become a dominant perspective in family business studies. In this article, we review the SEW literature, the explanatory power of SEW in family firm behavior, and the heterogeneity of family firms. Although we find that SEW distinguishes the behavior of family firms from that of nonfamily firms, the concept has been used and operationalized differently across studies. The few studies that measure SEW directly do not find clear and consistent explanatory power of the construct. Moreover, not many studies are conducted in Asian countries such as Japan, Korea, and China, raising the question as to whether the concept applies equally across institutional and cultural contexts. This article takes a pragmatic perspective on SEW by discussing and distinguishing between key dimensions of social wealth and emotional wealth, which we believe can enhance understanding of the behavior and heterogeneity of family businesses. Based on our deconstruction of the SEW concept, we propose various directions of future research.

摘要

社会情感财富(SEW) 是一个多维度的概念,主要指家族企业中家庭成员之间、家族之间、家族与组织、以及社会之间的非经济类财富。这一概念在家族企业研究中成为主流。本文回顾了与社会情感财富相关的文献、该概念对家族企业行为的解释力和家族企业的异质性。我们发现虽然用社会情感财富可以解释家族企业与非家族企业在行为上的差异,但它在不同研究中的操作化存在很大差异。即使在为数不多的直接测量SEW的文献中,我们也没发现清晰且一致的解释效度。此外,由于在亚洲国家(例如日本、韩国与中国)的研究较为有限,这一概念在不同制度与文化环境下有普遍的解释效度也未可知。本文通过讨论SEW的不同关键维度——即情感财富与社会财富,以加强我们对家族企业行为和异质性的理解,并提出了未来研究的若干方向。

Type
Perspectives
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

ACCEPTED BY Editor-in-Chief Arie Y. Lewin

References

REFERENCES

Adler, P. S., & Kwon, S. W. 2002. Social capital: Prospects for a new concept. Academy of Management Review, 27(1): 1740.CrossRefGoogle Scholar
Ainsworth, M. D. S., Blehar, M. C., Waters, E., & Wall, S. 1978. Patterns of attachment: A psychological study of the strange situation. Hillsdale, NJ: Erlbaum.Google Scholar
Aldrich, H. E., & Cliff, J. E. 2003. The pervasive effects of family on entrepreneurship: Toward a family embeddedness perspective. Journal of Business Venturing, 18(5): 573596.CrossRefGoogle Scholar
Aronoff, C. 2004. Self-perpetuation family organization built on values: Necessary condition for long-term family business survival. Family Business Review, 17(1): 5559.CrossRefGoogle Scholar
Arregle, J. L., Hitt, M. A., Sirmon, D. G., & Very, P. 2007. The development of organizational social capital: Attributes of family firms. Journal of Management Studies, 44(1): 7395.CrossRefGoogle Scholar
Bandelj, N. 2009. Emotions in economic action and interaction. Theory and Society, 38(4): 347366.CrossRefGoogle Scholar
Berrone, P., Cruz, C., & Gomez-Mejia, L. R. 2012. Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25(3): 258279.CrossRefGoogle Scholar
Berrone, P., Cruz, C., Gomez-Mejia, L. R., & Larraza-Kintana, M. 2010. Socioemotional wealth and corporate responses to institutional pressures do family-controlled firms pollute less. Administrative Science Quarterly, 55(1): 82113.CrossRefGoogle Scholar
Boers, B., Ljungkvist, T., Brunninge, O., & Nordqvist, M. 2017. Going private: A socioemotional wealth perspective on why family controlled companies decide to leave the stock-exchange. Journal of Family Business Strategy, 8(2): 7486.CrossRefGoogle Scholar
Bovers, J., & Hoon, C. 2020. Unpacking socio-emotional wealth: Exploring the origins of affective endowment in founder firms. International Journal of Entrepreneurship and Small Business, 40(1): 3253.CrossRefGoogle Scholar
Brigham, K. H., & Payne, G. T. 2019. Socioemotional wealth (SEW): Questions on construct validity. Family Business Review, 32(4): 326329.CrossRefGoogle Scholar
Burt, R. S., & Opper, S. 2017. Early network events in the later success of Chinese entrepreneurs. Management and Organization Review, 13(3): 497537.CrossRefGoogle Scholar
Carney, M. 2005. Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice, 29(3): 249265.CrossRefGoogle Scholar
Cesinger, B., Hughes, M., Mensching, H., Bouncken, R., Fredrich, V., & Kraus, S. 2016. A socioemotional wealth perspective on how collaboration intensity, trust, and international market knowledge affect family firms’ multinationality. Journal of World Business, 51(4): 586599.CrossRefGoogle Scholar
Chen, W., Han, C., Wang, L., Ieromonachou, P., & Lu, X. 2021. Recognition of entrepreneur's social ties and firm innovation in emerging markets: Explanation from the industrial institutional environment and survival pressure. Asia Pacific Journal of Management, 42(1): 491518.CrossRefGoogle Scholar
Chua, J. H., Chrisman, J. J., & De Massis, A. 2015. A Closer look at socioemotional wealth: Its flows, stocks, and prospects for moving forward. Entrepreneurship Theory and Practice, 39(2): 173182.CrossRefGoogle Scholar
Chua, J. H., Chrisman, J. J., Steier, L. P., & Rau, S. B. 2012. Sources of heterogeneity in family firms: An introduction. Entrepreneurship Theory and Practice, 36(6): 11031113.CrossRefGoogle Scholar
Cruz, C., Justo, R., & Castro, J. O. D. 2012. Does family employment enhance performance? Integrating socioemotional wealth and family embeddedness perspectives. Journal of Business Venturing, 27(1): 6276.CrossRefGoogle Scholar
Dakhli, M., & De Clercq, D. 2004. Human capital, social capital, and innovation: A multi-country study. Entrepreneurship and Regional Development, 16(2): 107128.CrossRefGoogle Scholar
Debicki, B. J., Kellermanns, F. W., Chrisman, J. J., Pearson, A. W., & Spencer, B. A. 2016. Development of a socioemotional wealth importance (SEWi) scale for family firm research. Journal of Family Business Strategy, 7(1): 4757.CrossRefGoogle Scholar
De Castro, G. M., Lopez, J. E. N., & Saez, P. L. 2006. Business and social reputation: Exploring the concept and main dimensions of corporate reputation. Journal of Business Ethics, 63(4): 361370.CrossRefGoogle Scholar
Deephouse, D. L., & Jaskiewicz, P. 2013. Do family firms have better reputations than non-family firms? An integration of socioemotional wealth and social identity theories. Journal of Management Studies, 50(3): 337360.CrossRefGoogle Scholar
Del Baldo, M. D. 2012. Corporate social responsibility and corporate governance in Italian SMEs: The experience of some “spirited businesses”. Journal of Management and Governance, 16(1): 136.CrossRefGoogle Scholar
Dyer, W. G. 2018. Are family firms really better? Reexamining “examining the ‘family effect’ on firm performance”. Family Business Review, 31(2): 240248.CrossRefGoogle Scholar
Dyer, W. G., & Whetten, D. A. 2006. Family firms and social responsibility: Preliminary evidence from the S&P 500. Entrepreneurship Theory and Practice, 30(6): 785802.CrossRefGoogle Scholar
Filser, M., De Massis, A., Gast, J., Kraus, S., & Niemand, T. 2018. Tracing the roots of innovativeness in family SMEs: The effect of family functionality and socioemotional wealth. Journal of Product Innovation Management, 35(4): 609628.CrossRefGoogle Scholar
Gabb, J. 2008. Affective attachment in families. In Redman, P. (Ed.), Attachment: Sociology and social worlds: 1950. Manchester, UK: Manchester University Press.Google Scholar
Gallo, M. A. 2004. The family business and its social responsibilities. Family Business Review, 17(2): 135148.CrossRefGoogle Scholar
Garfield, E. 2009. From the science of science to Scientometrics visualizing the history of science with HistCite software. Journal of Informetrics, 3(3): 173179.CrossRefGoogle Scholar
Gast, J., Filser, M., Rigtering, J. C., Harms, R., Kraus, S., & Chang, M. L. 2018. Socioemotional wealth and innovativeness in small-and medium-sized family enterprises: A configuration approach. Journal of Small Business Management, 56(1): 5367.CrossRefGoogle Scholar
Gedajlovic, E., & Carney, M. 2010. Markets, hierarchies, and families: Toward a transaction cost theory of the family firm. Entrepreneurship Theory and Practice, 34(6): 11451172.CrossRefGoogle Scholar
Gersick, K. F., Hampton, M. M., Lansberg, I., & Davis, J. A. 1997. Generation to generation: Life cycles of the family business. Harvard, MA: Harvard Business School Press.Google Scholar
Gomez-Mejia, L. R., Neacsu, I., & Martin, G. 2019. CEO risk-taking and socioemotional wealth: The behavioral agency model, family control, and CEO option wealth. Journal of Management, 45(4): 17131738.CrossRefGoogle Scholar
Gomez-Mejia, L. R., Patel, P. C., & Zellweger, T. M. 2018. In the horns of the dilemma: Socioemotional wealth, financial wealth, and acquisitions in family firms. Journal of Management, 44(4): 13691397.CrossRefGoogle Scholar
Gomez-Mejia, L. R., Cruz, C., Berrone, P., & De Castro, J. 2011. The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1): 653707.CrossRefGoogle Scholar
Gomez-Mejia, L. R., Haynes, K. T., Nunez-Nickel, M., Jacobson, K. J. L., & Moyano-Fuentes, J. 2007. Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1): 106137.CrossRefGoogle Scholar
Guo, H., Xu, E., & Jacobs, M. 2014. Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms. Journal of Business Research, 67(2): 116127.CrossRefGoogle Scholar
Habbershon, T. G., & Pistrui, J. 2002. Enterprising families domain: Family-influenced ownership groups in pursuit of transgenerational wealth. Family Business Review, 15(3): 223237.CrossRefGoogle Scholar
Hauck, J., Suess-Reyes, J., Beck, S., Prugl, R., & Frank, H. 2016. Measuring socioemotional wealth in family-owned and -managed firms: A validation and short form of the FIBER Scale. Journal of Family Business Strategy, 7(2): 133148.CrossRefGoogle Scholar
Hite, J. M. 2003. Patterns of multidimensionality among embedded network ties: A typology of relational embeddedness in emerging entrepreneurial firms. Strategic Organization, 1(1): 949.CrossRefGoogle Scholar
Jiang, D. S., & Munyon, T. P. 2017. More than a feeling: The promise of experimental approaches for building the affective and cognitive microfoundations of family firm behavior. In Kellermanns, F. & Hoy, F. (Eds.), Routledge companion to family business: 385400. New York: Routledge.Google Scholar
Kahneman, D., & Tversky, A. 1979. Prospect theory: An analysis of decision under risk. Econometrica, 47(2): 263291.CrossRefGoogle Scholar
Kets de Vries, M. F. R. 1993. The dynamics of family controlled firms: The good and the bad news. Organizational Dynamics, 21(3): 5971.CrossRefGoogle Scholar
Kurland, N. B., & McCaffrey, S. J. 2020. Community socioemotional wealth: Preservation, succession, and farming in Lancaster County, Pennsylvania. Family Business Review, 33(3): 244264.CrossRefGoogle Scholar
Lawler, E. J., Thye, S. R., & Yoon, J. 2008. Social exchange and micro social order. American Sociological Review, 73(4): 519542.CrossRefGoogle Scholar
Le Breton-Miller, I., & Miller, D. 2013. Socioemotional wealth across the family firm life cycle. Entrepreneurship Theory and Practice, 37(6): 13911397.CrossRefGoogle Scholar
Leitterstorf, M. R., & Rau, S. B. 2014. Socioemotional wealth and IPO underpricing of family firms. Strategic Management Journal, 35(5): 751760.CrossRefGoogle Scholar
Lewin, A. Y., Chiu, C. Y., Fey, C. F., Levine, S. S., McDermott, G., Murmann, J. P., & Tsang, E. W. K. 2016. The critique of empirical social science: New policies at Management and Organization Review. Management and Organization Review, 12(4): 649658.CrossRefGoogle Scholar
Li, X., Zhu, H., Chen, W., & Fu, M. 2011. Lee Kum Kee Corp. Ltd (HK): 120 years and going strong. In Au, K., Craig, J. B., & Ramachandran, K. (Eds.), Family enterprise in the Asia Pacific: Exploring transgenerational entrepreneurship in family firms: 4059. Cheltenham, UK: Edward Elgar, UK.Google Scholar
Liang, X., Wang, L., & Cui, Z. 2014. Chinese private firms and internationalization: Effects of family involvement in management and family ownership. Family Business Review, 27(2): 126141.CrossRefGoogle Scholar
Lu, F., Kwan, H. K., & Zhu, Z. 2021. The effects of family firm CEO traditionality on successor choice: The moderating role of socioemotional wealth. Family Business Review, 34(2): 213234.CrossRefGoogle Scholar
Luo, Y., Huang, Y., & Wang, S. L. 2012. Guanxi and organizational performance: A meta-analysis. Management and Organization Review, 8(1): 139172.CrossRefGoogle Scholar
Martinez-Romero, M. J., Rojo-Ramirez, A. A., & del Pilar Casado-Belmonte, M. 2019. Value creation in privately held family businesses: The moderating role of socioemotional wealth. Canadian Journal of Administrative Sciences, 37(3): 283299.CrossRefGoogle Scholar
McLarty, B. D., & Holt, D. T. 2019. A bright side to family firms: How socioemotional wealth importance affects dark traits–job performance relationships. Family Business Review, 32(4): 378395.CrossRefGoogle Scholar
Miller, D., & Le Breton-Miller, I. 2014. Deconstructing socioemotional wealth. Entrepreneurship Theory and Practice, 38(4): 713720.CrossRefGoogle Scholar
Nason, R. S., Mazzelli, A., & Carney, M. 2019. The ties that unbind: Socialization and business-owning family reference point shift. Academy of Management Review, 44(4): 846870.CrossRefGoogle Scholar
Ng, P. Y., & Hamilton, R. T. 2021. Socioemotional wealth and the innovativeness of family SMEs in the United Arab Emirates. Journal of Small Business & Entrepreneurship. doi:10.1080/08276331.2021.1926779CrossRefGoogle Scholar
Niehm, L. S., Swinney, J., & Miller, N. J. 2010. Community social responsibility and its consequences for family business performance. Journal of Small Business Management, 46(3): 331350.CrossRefGoogle Scholar
Parsons, T., & Shils, E. 1951. Toward a general theory of action. Cambridge: Harvard University Press.CrossRefGoogle Scholar
Peng, M. W., Sun, W., Vlas, C., Minichilli, A., & Corbetta, G. 2018. An institution-based view of large family firms: A recap and overview. Entrepreneurship Theory and Practice, 42(2): 187205.CrossRefGoogle Scholar
Peteraf, M. A., Stefano, G. D., & Verona, G. 2013. The elephant in the room of dynamic capabilities: Bringing two diverging conversations together. Strategic Management Journal, 34(12): 13891410.CrossRefGoogle Scholar
Reay, T., Jaskiewicz, P., & Hinings, C. R. 2015. How family, business, and community logics shape family firm behavior and “rules of the game” in an organizational field. Family Business Review, 28(4): 292311.CrossRefGoogle Scholar
Redding, G. 1990. The spirit of Chinese capitalism. Berlin, Germany: De Gruyter.CrossRefGoogle Scholar
Redding, G. 2000. What is Chinese about Chinese family business? And how much is family and how much is business? In Yeung, H. W. & Olds, K. (Eds.), Globalization of Chinese business firms: 3154. London: Palgrave Macmillan.Google Scholar
Redding, G., & Witt, M. A. 2007. The future of Chinese capitalism: Choice and chances. Oxford: Oxford University Press.Google Scholar
Redding, G., & Witt, M. A. 2015. Advancing indigenous management theory: Executive rationale as an institutional logic. Management and Organization Review, 11(2): 179203.CrossRefGoogle Scholar
Rialp, A., Merigo, J. M., Cancino, C. A., & Urbano, D. 2019. Twenty-five years (1992–2016) of the international business review: A bibliometric overview. International Business Review, 28(6): 128.CrossRefGoogle Scholar
Rothbaum, F., Rosen, K., Ujiie, T., & Uchida, N. 2002. Family systems theory, attachment theory, and culture. Family Process, 41(3): 328350.CrossRefGoogle ScholarPubMed
Rousseau, M. B., Kellermanns, F., Zellweger, T., & Beck, T. E. 2018. Relationship conflict, family name congruence, and socioemotional wealth in family firms. Family Business Review, 31(4): 397416.CrossRefGoogle Scholar
Salvato, C., Chirico, F., & Sharma, P. 2010. A farewell to the business: Championing entrepreneurial exit in family firms. Entrepreneurship and Regional Development, 22(3): 321348.CrossRefGoogle Scholar
Schulze, W. S. 2016. Socio-emotional wealth and family: Revisiting the connection. Management Research, 14(3): 288297.Google Scholar
Schulze, W. S., & Kellermanns, F. W. 2015. Reifying socioemotional wealth. Entrepreneurship Theory and Practice, 39(3): 447459.CrossRefGoogle Scholar
Shapiro, J. 2010. Attachment in the family context: Insights from development and clinical work. In Bennett, S. & Nelson, J. K. (Eds.), Adult attachment in clinical social work: 147172. The Netherlands: Springer.Google Scholar
Sharma, P., & Carney, M. 2012. Value creation and performance in private family firms: Measurement and methodological issues. Family Business Review, 25(3): 233242.CrossRefGoogle Scholar
Sharma, P., Chrisman, J. J., & Chua, J. H. 2003. Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18(5): 667687.CrossRefGoogle Scholar
Smith, C. 2016. Environmental jolts: Understanding how family firms respond and why. Family Business Review, 29(4): 401423.CrossRefGoogle Scholar
Sorenson, R., Goodpaster, K., Hedberg, P., & Yu, A. 2009. The family point of view, family social capital, and firm performance: An exploratory test. Family Business Review, 22(3): 239253.CrossRefGoogle Scholar
Suchman, M. C. 1995. Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3): 571610.CrossRefGoogle Scholar
Swab, R. G., Sherlock, C., Markin, E., & Dibrell, C. 2020. “SEW” what do we know and where do we go? A review of socioemotional wealth and a way forward. Family Business Review, 33(4): 424445.CrossRefGoogle Scholar
Tomo, A., Mangia, G., Pezzillo Iacono, M., & Canonico, P. 2021. Family firms going international: Integrating corporate identity-building processes and socioemotional wealth dimensions. European Management Review. doi:10.1111/emre.12462.Google Scholar
Tonnies, F. 1887. Gemeinschaft and gesellschaft. New York: Harper & Row publishing.Google Scholar
Van Eck, N. J., & Waltman, L. 2010. Software survey: VOS viewer, a computer program for bibliometric mapping. Scientometrics, 84(2): 523538.CrossRefGoogle Scholar
Ward, J. L. 1987. Keeping the family business healthy: How to plan for continuous growth, profitability and family leadership. San Francisco: Jossey Bass.Google Scholar
Welter, F., & Kautonen, T. 2005. Trust, social networks and enterprise development: Exploring evidence from East and West Germany. International Entrepreneurship and Management Journal, 1(3): 367379.CrossRefGoogle Scholar
Wessel, S., Decker, C., Lange, K. S., & Hack, A. 2014. One size does not fit all: Entrepreneurial families reliance on family offices. European Management Journal, 32(1): 3745.CrossRefGoogle Scholar
Xu, K., Hitt, M. A., & Dai, L. 2020. International diversification of family-dominant firms: Integrating socioemotional wealth and behavioral theory of the firm. Journal of World Business, 55(3): 101071.CrossRefGoogle Scholar
Zahra, S. A. 2010. Harvesting family firms’ organizational social capital: A relational perspective. Journal of Management Studies, 47(2): 345366.CrossRefGoogle Scholar
Zahra, S. A., Hayton, J. C., & Salvato, C. 2004. Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28(4): 363381.CrossRefGoogle Scholar
Zellweger, T. M., & Dehlen, T. 2012. Value is in the eye of the owner: Affect infusion and socioemotional wealth among family firm owners. Family Business Review, 25(3): 280297.CrossRefGoogle Scholar
Zellweger, T. M., & Nason, R. S. 2008. A stakeholder perspective on family firm performance. Family Business Review, 21(3): 203216.CrossRefGoogle Scholar
Zellweger, T. M., Nason, R. S., Nordqvist, M., & Brush, C. G. 2013. Why do family firms strive for nonfinancial goals? An organizational identity perspective. Entrepreneurship Theory and Practice, 37(2): 229248.CrossRefGoogle Scholar
Zurcher, L. A., Meadow, A., & Zurcher, S. L. 1965. Value orientation, role conflict, and alienation from work: A cross-cultural study. American Sociological Review, 30(4): 539548.CrossRefGoogle ScholarPubMed
Supplementary material: File

Chen et al. supplementary material

Chen et al. supplementary material

Download Chen et al. supplementary material(File)
File 334 KB
2
Cited by

Save article to Kindle

To save this article to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Deconstructing Socioemotional Wealth: Social Wealth and Emotional Wealth as Core Properties of Family Firms
Available formats
×

Save article to Dropbox

To save this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you used this feature, you will be asked to authorise Cambridge Core to connect with your Dropbox account. Find out more about saving content to Dropbox.

Deconstructing Socioemotional Wealth: Social Wealth and Emotional Wealth as Core Properties of Family Firms
Available formats
×

Save article to Google Drive

To save this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you used this feature, you will be asked to authorise Cambridge Core to connect with your Google Drive account. Find out more about saving content to Google Drive.

Deconstructing Socioemotional Wealth: Social Wealth and Emotional Wealth as Core Properties of Family Firms
Available formats
×
×

Reply to: Submit a response

Please enter your response.

Your details

Please enter a valid email address.

Conflicting interests

Do you have any conflicting interests? *