The setting of non-financial goals in the family firm: the influence of family climate and identification

Abstract

The article contributes to the literature on socioemotional wealth by analysing the drivers of non-financial goals in the family firm. We draw from family system and social identity literature to analyse how family dynamics affect the setting of non-financial goals suggesting that this influence is mediated by the family's degree of identification with the firm. More specifically, we propose that a positive family climate in terms of cohesion, open communication and intergenerational attention generates a greater identification of the family with the firm. In turn, identification leads the firm to adopt value creation goals specific to the family or non-financial goals. Data obtained from 374 members of TMTs in 173 Spanish private family firms allow for the confirmation of these expectations.