Research Ideation - Atul

• Socioemotional wealth (SEW)

– non-financial aspects of the firm that meet the family’s
affective needs, such as identity, the ability to exercise
family influence, and the perpetuation & conservation of
the family dynasty, values and social capital.
– Family business tries to protect SEW over other type of
benefits and wealth

• Family business (No consensus on definition)

– a business managed with the intention to shape and
pursue the vision of members of the same family or a
small number of families in a manner that is potentially
sustainable across generations of the family or families.
– in which a family unilaterally controls the firm through a
majority ownership (>50% of the shares) and has
managerial and board presence.
 Measurement
• Berrone et al. (2012) proposed that SEW could be
defined by five major dimensions which would
have different weights depending on the family’s
preferences. The five dimensions are:
– Family control and influence (6 themes)
– Identification of family members with the firm(6)
– Binding social ties (5)
– Emotional attachment (6)
– Renewal of family bonds to the firm through dynastic
succession (4)
• Berrone et al. (2012) also suggested the central
themes in each dimension to create
questionnaire/interview questions etc.
 Example
• Family Control and Influence (FCI):
1. The majority of the shares in my family business are
owned by family members.
2. In my family business, family members exert control
over the company’s strategic decisions.
3. In my family business, most executive positions are
occupied by family members.
4. In my family business, non-family managers and
directors are named by family members.
5. The board of directors is mainly composed of family
members.
6. Preservation of family control and independence are
important goals for my family business.
 Possible research ideas
• How socioemotional wealth changes during
normal, intrafamily and external succession in
family owned business. A comparison.
• Can type of socioemotional wealth decide a-
priori success of external succession in family
owned business.
• How socioemotional wealth changes during
external succession in family owned business.
Thanks