Influence of family socioemotional wealth on strategic decision making in Indian family firms

Abstract

Family firms give priority to non-financial objectives, also known as socio-emotional wealth (SEW), during the strategic decision-making process. While some research has been performed on the impact of socio-emotional wealth (SEW) as a single construct on specific strategic choices taken by family firms, a gap exists in understanding the influence of SEW as a multidimensional construct on the strategic decisions made. The purpose of this paper is to explore the influence of various dimensions of SEW on strategic decisions in family firms. Multiple case study approach was adopted to analyse seven cases from family businesses of different size and complexity. Data were obtained using semi-structured interviews from Indian family firms. Findings suggest that SEW dimensions like family control and influence on business and emotional attachment with family members are found to be having a significant impact on strategic decisions in family firms.