Life satisfaction of family business members: The role of socioemotional wealth goals and psychological functioning

Abstract

ABSTRACT Family businesses offer affective benefits to family business owners and family members employed at their family’s businesses. However, little is known about whether the pursuit of “Socioemotional Wealth” (hereafter “SEW”) goals in family businesses relates to the psychological functioning and life satisfaction of family business owners/members. Utilizing a self-determination theory perspective, this study examines whether the pursuit of SEW goals is associated with life satisfaction of family business owners/members through intrinsic psychological needs fulfillment and positive psychological functioning in terms of purpose in life, personal growth, mastery, positive relations, and autonomy. Following a quantitative methodology, survey data was collected from 175 family business owners/family members employed in their family’s business in the United States. Results of PLS-SEM show that SEW goals have a significant positive association with subjective well-being and that psychological functioning fully mediates this relationship. This study adds to our understanding of mental health of family business owners/members and individual-level outcomes of SEW.