Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Preserving Socioemotional Wealth of Small and Medium-Sized Family Businesses: A Propose Framework

Kong Lai Kuan, Ju Soon Yew, Nurul Nadia Abd Aziz, Nor Khairunnisa Mat Yunus, Zaidatul Nadiah Abu Yazid

http://dx.doi.org/10.6007/IJARBSS/v11-i11/11144

Open access

Family businesses are found to acquired non-economic goals as compared to their business counterparts. Nevertheless, small and medium-sized family businesses are found to be facing challenges such as limited inter-knowledge sharing, lack of strategic succession planning and technology adoption that might hinder their goals achievement and sustainability. Thus, this research aims to propose a framework as to preserve the socioemotional wealth of small and medium-sized family businesses through family resources and capability such as knowledge sharing, succession planning and technology readiness. This study also proposes to test the moderating role of technology readiness in the relationship of knowledge sharing and succession planning toward socioemotional wealth of small and medium-sized family business.

Ahmad, F. (2017), Knowledge sharing in a non-native language context: challenges and strategies, Journal of Information Science, 24/2, 248-264.
Ahmad, N., & Daghfous, A. (2010). Knowledge sharing through inter-organizational knowledge networks: Challenges and opportunities in the United Arab Emirates. European Business Review, 22(2), 153-174.
Alonso-Dos-Santos, M., & Llanos-Contreras, O. (2019). Family business performance in a post-disaster scenario: The influence of socioemotional wealth importance and entrepreneurial orientation. Journal of Business Research, 101, 492-498.
Asare, R., Akuffobe, M., Quaye, W., & Atta-Antwi, K. (2015). Characteristics of micro, small and medium enterprises in Ghana: gender and implications for economic growth. African Journal of Science, Technology, Innovation and Development, 7(1), 26-35.
Astrachan, J. H., & Jaskiewicz, P. (2008). Emotional returns and emotional costs in privately held family businesses: Advancing traditional business valuation. Family Business Review, 21, 139-149.
Aziz, N. N. A., & Wahid, N. A. (2018). Why Consumers are Hesitant to Shop Online: The Major Concerns towards Online Shopping. International Journal of Academic Research in Business and Social Sciences, 8(9), 1175-1185.
Baird, L., & Henderson, J. C. (2001). The Knowledge Engine. San Francisco: BK.
Baixauli-Soler, J. S., Belda-Ruiz, M., & Sánchez-Marín, G. (2021). Socioemotional wealth and financial decisions in private family SMEs. Journal of Business Research, 123, 657-668.
Berrone, P., Cruz, C., & Gómez-Mejía, L. R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25/3, 258-279. https:// doi.org/10.1177/0894486511435355
Business Today. (2018). SMEs should embrace technology as a business enabler, say SAP and MDEC. Retrieved Jan 29, 2020, from
https://www.businesstoday.com.my/2018/09/21/smes-should-embrace-technology-as-business-enabler-say-sap-and-mdec/
Cabrera-Suárez, K., De Saá-Pérez, P., & García-Almeida, D. (2001). The succession process from a resource-and knowledge-based view of the family firm. Family Business Review, 14/1, 37-46.
Chirapanda, S. (2020). Identification of success factors for sustainability in family businesses. Journal of Family Business Management, 10/1, 58-75.
Chirico, F. (2008a). The creation, sharing and transfer of knowledge in family business. Journal of Small Business and Entrepreneurship, 21/4, 413-434.
Chirico, F. (2008b). Knowledge accumulation in family firms: Evidence from four case studies. International Small Business Journal, 26, 433-462.
Cho, N. M., Okuboyejo, S., & Dickson, N. (2017). Factors Affecting the Sustainability of Family Businesses in Cameroon: An Empiri cal Study in the Northwest and Southwest Regions of Cameroon. Journal of Entrepreneurship: Research and Practice, 2-19.
Chrisman, J. J., Chua, J. H., Pearson, A. W., & Barnett, T. (2012). Family involvement, family influence, and family-centered non-economic goals in small firms. Entrepreneurship Theory and Practice, 36/2, 267-293.
Chua, J. H., Chrisman, J. J., & Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship Theory & Practice, 23/4, 19-39.
Cunningham, J., Seaman, C. & Mcguire, D. (2017). Perceptions of knowledge sharing among small family firm leaders: a structural e quation model. Family Business Review, 30/2, 160-181.
Debicki, B. J. (2012). Socioemotional wealth and family firm internationalization: The moderating effect of environmental munificence. A Dissertation, Mississippi State University, Mississippi.
Debicki, B. J., Kellermanns, F. W., Chrisman, J. J., Pearson, A. W., & Spencer, B. A. (2016). Development of a socioemotional wealth importance (SEWi) scale for family firm research. Journal of Family Business Strategy, 7/1, 47-57.
Debicki, B. J., Van de Graaff Randolph, R., & Sobczak, M. (2017). Socioemotional wealth and family firm performance: a stakeholder approach. Journal of Managerial Issues, 82-111.
Eddleston, K. A., Kellermanns, F. W., & Sarathy, R. (2008). Resource configuration in family firms: Linking resources, strategic planning and technological opportunities to performance. Journal of Management Studies, 45/1, 26-50.
Gomez-Mejia, L. R., Haynes, K. T., Nunez-Nickel, M., Jacobson, K. J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52, 106-137.
Grant, R. M. (1996). Prospering in dynamically-competitive environments: Organizational capability as knowledge integration. Organization Science, 7/4, 375-387.
Hauck, J., Prügl, R. (2015). Innovation activities during intra-family leadership succession in family firms: An empirical study from a socioemotional wealth perspective. Journal of Family Business Strategy, 6/2, 104-118. https://doi.org/10.1016/j.jfbs.2014.11.002
Jiang, D. S., Kellermanns, F. W., Munyon, T. P., & Morris, M. L. (2018). More than meets the eye: A review and future directions for the social psychology of socioemotional wealth. Family Business Review, 31/1, 125-157.
Jones, C. D., Makri, M., & Gomez–Mejia, L. R. (2008). Affiliate directors and perceived risk bearing in publicly traded, family–controlled firms: The case of diversification. Entrepreneurship Theory and Practice, 32/6, 1007-1026.
Lin, W. B. (2013). Research on knowledge sharing and interpersonal relationships: Empirical study of family firms and non-family firms. Quality & Quantity, 47/1, 151-166. DOI 10.1007/s11135-011-9509-y.
Low, C. (2018). SME CEO forum 2018 – How the digital economy will disrupt businesses in Malaysia. Retrieved Jan 29, 2020, from Kaodim website: https://comms.kaodim.com/2018/10/25/sme-ceo-forum-2018-digitising-smes-across-southeast-asia/
Loy, J. T. C. (2010). Dynasting across cultures: A grounded theory of Malaysian Chinese family firms. A Dissertation, University of Minnesota.
Martin, F. M., Ciovica, L., & Cristescu, M. P. (2013). Implication of Human Capital in the Development of SMEs through the ICT Adoption. Procedia Economics and Finance, 6, 748-753.
Miller D., Le Breton-Miller I., & Lester, R. H. (2010). Family ownership and acquisition behavior in publicly-traded companies. Strategic Management Journal, 31/2, 201-223
Muithi, F. M. (2018). Factors affecting the sustainability of family businesses in Ghana after the exit of first generation of founding family members (Doctoral dissertation).
Németh, K., & Németh, S. (2018). The Relationship Between The Socioemotional Wealth And The Family Businesses’sustainability. Management, 16, 18.
Ntwoku, H., Negash, S., & Meso, P. (2017). ICT adoption in Cameroon SME: application of Bass diffusion model. Information Technology for Development, 23/2, 296-317.
O’Dell, C., & Grayson, C. J. (1998), If only we knew what we know: Identification and transfer of internal best practice. California Management Review, 40/3, 154-174.
Omar, C. M. Z. C. (2019). Small and medium enterprises (SME): contribution and challenges. International Journal of Research in Commerce and Management Studies, 1/1, 53-59.
Ogundele, O. J. K., Idris, A. A., & Ahmed-Ogundipe, K. A. (2012). Entrepreneurial succession problems in Nigeria’s family businesses: A threat to sustainability. European Scientific Journal, 8/7, 208-227.
Onuoha, B. C. (2013). Poor succession planning by entrepreneurs: The bane of generational enterprises in South-East, Nigeria. AFRREV IJAH: An International Journal of Arts and Humanities, 2/2, 270-281.
Parasuraman, A. (2000). Technology Readiness Index (TRI) a multiple-item scale to measure readiness to embrace new technologies. Journal of service research, 2/4, 307-320.
Prasanna, R. P. I. R., Jayasundara, J. M. S. B., Gamage, N., Kumara, S., Ekanayake, E. M. S., Rajapakshe, P. S. K., & Abeyrathne, G. A. K. N. J. (2019). Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance. Journal of Open Innovation: Technology, Market, and Complexity, 5(4), 100.
PwC Global Family Business Survey: Focus on Malaysia. (2015). Up close and professional: the family factor. Retrived from https://www.pwc.com.
PwC. (2016): The family business sector in 2016. Success and succession. Retrived from https://www.pwc.com/gx/en/services/family-business/family-business-survey-2016/succession.html
PwC Global Family Business Survey. (2018). The value effect. Retrived from https://www.pwc.com/gx/en/services/family-business/family-business-survey-2018.html.
PwC Family Business Survey 2018: The Malaysian Chapter. (2019): The values effect. Retrieved from https://www.pwc.com/my/en/ assets/publications/2019/family-biz-survey-2018v2.pdf
Poza, E. J. (2004). Family Business.Thomson/South-Western.
Rokhim, R., Wulandari, P., & Mayasari, I. (2018). Small medium enterprises technology acceptance model: A conceptual review. International Journal of Business and Society, 19, 689-699.
Rothwell, W. (2001). Effective succession planning. New York: American Management Association
Schepers, J. & Voordeckers W. & Steijvers, T. & Laveren, E. (2014). The entrepreneurial orientation-performance relationship in private family firms: The moderating role of socioemotional wealth. Small Business Economics, 43/1, 39-55.
Schulze, W. S., Lubatkin, M. H., Dino, R. N., & Buchholtz, A. K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12/2, 99-116.
Sharma, P., Chrisman, J. J., & Chua, J. H. (1997). Strategic management of the family business: Past research and future challenges. Family Business Review, 10/1, 1-36.
Sirmon, D., & Hitt, M. (2003). Managing resources: Linking unique resources, management and wealth creation in family firms. Entrepreneurship Theory and Practice, 27/4, 339-359.
Syed-Ikhsan, S. O. S., & Rowland, F. (2004). Benchmarking knowledge management in a public organization in Malaysia. Benchmarking: An International Journal, 11/3, 238-266.
Wang, S., & Noe, R. A. (2010). Knowledge sharing: A review and directions for future research. Human Resource Management Review, 20, 115-131.
Ward, J. L. (1997). Growing the family business: Special challenges and best practices. Family Business Review, 10/4, 323-337.
Westhead, P., & Cowling, M. (1998). Family firm research: The need for a methodological rethink. Entrepreneurship Theory and Practice, 23/1, 31-56.
Yang, J. (2007). The impact of knowledge sharing on organizational learning and effectiveness. Journal of Knowledge Management, 11/2, 83-90.

In-Text Citation: (Kuan et al., 2021)
To Cite this Article: Kuan, K. L., Yew, J. S., Aziz, N. N. A., Yunus, N. K. M., & Yazid, Z. N. A. (2021). Preserving Socioemotional Wealth of Small and Medium-Sized Family Businesses: A Propose Framework. International Journal of Academic Research in Business and Social Sciences, 11(11), 31–41.