Abstract

The research empirically investigates the relationship between socioemotional wealth (SEW) and entrepreneurial orientation (EO) in family firms. SEW pertains to the noneconomic aspects of family firms and suggests that family firms make decisions to protect their socio-emotional endowment i.e., the stock of affect-related value that a family derives from the firm (Gomez-Mejia et al., 2011, 2007). The literature regarding whether family firms are entrepreneurial or conservative is inconclusive. In family firms, entrepreneurship has a significant role in their survival, however, as the protection of socio-endowment is prioritised above financial performance, this is likely to impact on EO. Five dimensions of SEW are measured (Berrone et al., 2012): Family control and influence (F); Identification of family members with the firm (I); Binding social ties (B); Emotional attachment of family members (E); and Renewal of family bonds to the firm through dynastic succession (R). The extent of EO is assessed using the 9 item scale developed by Covin and Slevin (1989) measuring innovativeness, pro-activeness and risk taking.

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