Socioemotional wealth, while family conflict and family firm governance both exist in family business

Abstract

This study examines how family conflict and family firm governance affect socio-emotional wealth, with decision-making as a mediating variable. This research was carried out on 48 samples of individual family members, as well as business owners and managers to examine the perception of socioemotional wealth. The method used in this research is quantitative, with PLSSEM. The results show that family conflict has a negative but not significant effect on decision-making and socio-emotional wealth, and decision-making has a positive and significant effect on socio-emotional wealth, while family firm governance has a significant positive effect on decision-making and socioemotional wealth. Meanwhile, decision-making has a low mediation effect in explaining the relationship between family firm governance and socio-emotional wealth.