Flexible work arrangements in family firms: A socioemotional wealth perspective

Abstract

This study investigates the use and effects of Flexible Work Arrangements (FWAs) across family and non-family firms. Drawing on the Socioemotional Wealth (SEW) model, first, I theorise on family firms’ attitude towards FWAs. I anticipate that, although FWAs may deliver employee and organisational advantages, family firms are less likely to adopt them because they reduce employee visibility and presence, thus threatening their ability to control the workforce (i.e. an essential component of their SEW). Second, I extend application of the SEW model to the analysis of the influence of family on the effects of FWAs. I posit that the pursuit of control provides a less-than-optimal ground for these arrangements to thrive in family firms, thus reducing their workforce outcomes. The hypotheses proposed are tested via ordinary least square regressions on a sample of 781 highly diverse workplaces operating in different industries and sectors in the UK. The results obtained shed light on the stance family firms take when addressing workforce management decisions and offer novel insights into the distinctiveness of these firms as employers, supporting the view that they tend to be agentic towards the workforce. Importantly, the findings here also draw attention to critical challenges family firms may face when competing for talent, particularly at the current time when the shift towards flexible work is accelerating dramatically.