The influence of family commitment on the socioemotional wealth agenda of Spanish family firms: the effects on performance

Abstract

The socioemotional wealth (SEW) is recognised as a relevant approach to analyse the idiosyncratic nature of family firms (FFs). However, scholars have suggested that SEW may have both a bright and a dark side in relation to its influence on FFs behaviour and performance and that family influence may play a key role in this issue. We analyse the effect of family commitment on the orientation to an extended or a restricted SEW agenda and on the economic performance of the FF. The analysis of data from 374 family and non-family managers in 173 Spanish non-listed FFs shows that both an extended and restricted SEW agendas derive from family commitment, but only the goals related to an extended SEW lead to better performance. A multigroup analysis shows that the positive performance effects of the extended SEW agenda can only be obtained when family managers are a majority in the top management teams (TMTs)