Purpose Socioemotional wealth (SEW) has emerged as a defining concept that distinguishes family-owned business organizations from businesses that are not exclusively controlled by family coalitions. This empirical study expands the literature by presenting a more nuanced understanding of how individual dimensions of socioemotional wealth interacts with firm performance outcomes. Deploying the stakeholder theory, the purpose of this study is to propose a research model linking the five dimensions of SEW with firm performance to propose and test a set of hypotheses. Design/methodology/approach To test the hypotheses, data were collected through a survey of 357 medium-to-large private family firms in Bangladesh that were involved in export-oriented production of ready-made garments. Based on structural equation modeling, the data were analyzed using SmartPLS. Findings The results indicate that out of the five dimensions of SEW, three dimensions – family identification, emotional attachment and renewal of bonds through dynastic succession – have a positive and significant impact on firm performance. On the other hand, family control and influence have a significant but negative impact on firm performance. The only exception is in the case of binding social ties, which indicate a non-significant relationship. Research limitations/implications By attempting to provide a clearer and predictable link between family-centric non-economic goals and firm-centric business goals, the study contributes to theory building and attempts to address the conflict in the literature in the study of family involvement in management and performance of the business enterprise. Practical implications For industry practitioners and family business owners, it could provide guidance on which family-centric goals would maximize benefits to the firm and address the family-based utilities. Future strategic plans aimed at growth and sustainability of family firms can derive important clues from the findings of this study and design actionable goals that leverage those dimensions of socioemotional wealth that have a positive impact on firm performance. Social implications Social implications of ensuring survival of family businesses are significant because of their role as one of the largest sources of employment generation in most societies. Policymakers and regulatory authorities would be able to frame customized initiatives to foster growth and sustainability of family enterprises that have such large impact on the economy. Originality/value Theoretical contribution of the study comes from a more nuanced understanding of relationships between the individual dimension of SEW and firm performance, which will delineate a more consistent and predictable link between family-centric goals and firm-level outcomes. From the perspective of practical contribution, this may provide useful guidelines to industry practitioners and policymakers to frame initiatives that enable growth and sustainability of family firms that are typically the largest employment generators in most economies.

PurposeThe purpose of this research is to examine the interplay between family commitment as a family-centric resource and professionalization of the organization as a firm-centric resource to determine how the two phenomenon come together to enhance business performance in the context of privately held family firms.Design/methodology/approachDeploying the theoretical lens offered by the resource-based view, a conceptual link is developed between family commitment to the firm and firm performance with the potential moderating influence of firm professionalization. The hypotheses are tested using data collected from 357 privately held medium-to-large family-owned manufacturing companies in Bangladesh. The data are analyzed through structural equation modeling using SmartPLS (v.3.2).FindingsThe data analysis suggests that in absence of the moderator; professionalization, family commitment has a positive and significant association with firm performance. While in the presence of the moderator the above relationship is substantially stronger. The findings indicate that when family-specific resources and firm-specific resources are synchronized, it enhances performance of the family firm and puts it on a strong economic footing toward a more sustainable future.Research limitations/implicationsCross-sectional nature of the study exposes it to the specter of common method bias despite the fact that procedural remedies were initiated to minimize the impact of such occurrence. Furthermore, data were collected from a single individual in each organization. Therefore, a longitudinal study with data obtained from multiple individuals at different levels of the organization would possibly yield more robust findings.Practical implicationsLeaders of family firms may find pertinent clues from the outcome of this study. Particularly, the confluence of family commitment to the firm as a family-specific resource and professionalization as a firm-specific resource can be valuable, rare, difficult to imitate and substitute source of competitive advantage for the family business organization.Social implicationsSurvival of family businesses is vital to the global economy as one of the primary drivers of global gross domestic product growth and source of new employment. Policymakers can benefit from the findings of this study to customize policies to nurture growth of family enterprises and incentivize family firms to adopt professionalization through better governance and transparent managerial procedures.Originality/valueA nuanced understanding of how family commitment and firm professionalization combine to significantly improve performance of family firms has not been dominant in the literature. Therefore, findings of this study carry special theoretical implications, because it suggests that both family-specific features and firm-specific features are necessary for enhanced levels of firm-centric business outcomes such as economic performance.

Purpose Although family business literature acknowledges that family firms owners are motivated by a set of socioemotional wealth (SEW) goals along with firm-centric business goals, yet a consistently predictable pattern of relationship between SEW and financial wealth is yet to be discerned. The purpose of this paper is to propose a theoretical model based on the stakeholder approach to suggest that family commitment mediates the association between the dimensions of SEW and firm performance. Design/methodology/approach A set of hypotheses are proposed that are tested using structural equation modeling with data collected from 357 medium to large sized privately held family firms in Bangladesh. The data analysis is done with SmartPLS (v.3.2). Findings The results indicate that family commitment partially mediates the relationships between family control and influence, family identification, emotional attachment and renewal of family bonds through dynastic succession and firm performance. The only non-significant relationship was between binding social ties and firm performance. The results provide a more nuanced understanding of the link between SEW goals and firm performance, and present important implications for theory and practice. Research limitations/implications The cross-sectional nature of the study exposes it to the specter of common method bias despite the fact that procedural remedies were initiated to minimize the impact of such occurrence. A longitudinal study with data obtained from multiple individuals at different levels of the organization would possibly yield more robust findings. Furthermore, in the absence of a multi-country and multi-sector analysis, a broad generalization of the findings may not be feasible. Practical implications The knowledge that family identity, emotional attachment and renewal of family bonds through dynastic succession may be leveraged to enhance the commitment of subsequent generation of family firm owners to the firm that may be pertinent to incumbents who desire to see their successors more engaged in the family enterprise. Furthermore, knowing that excessive focus on family control over the firm leads to negative outcomes is also pertinent to family firm leaders. Social implications Survival of family businesses is vital to the global economy as one of the primary drivers of global GDP growth and source of new employment. Policy makers can benefit from the findings of this study to customize policies that take into cognizance the importance of SEW owners of family firms and the fact that some of these SEW goals actually benefit the firm in terms of enhanced commitment to the enterprise and consequently superior firm performance. Originality/value The role of family commitment as a mediator between SEW and firm performance has not been dominant in the literature. By providing a finer-grained understanding of how family commitment accounts for the relationship between family-centric non-economic goals such as SEW and firm-centric goals such as business performance, the study presents a theoretical link between sociomemotional wealth and financial wealth in the context of private family firms.

The ready-made garments (RMG) production industry in Bangladesh has achieved a major presence in the global fashion apparel supply chain particularly due to the competitive advantage (CA) primarily attributed to its' large pool of low cost labor. However, the competitiveness of this industry is under threat from other emerging economies that are rapidly becoming lower cost production sources. As a result the Bangladesh RMG sector is under pressure to find alternate sources of CA by introducing sustainable supply chain management (SSCM) practices along with improving the dynamic capabilities (DC) of the RMG manufacturers. However, the extant literature indicates that there is a dearth of sufficient empirical evidence on whether SSCM practices in combination with improvements in management and technological capabilities of such enterprises leads to gains in CA. In order to address the aforesaid gap, this study draws on the integration of the SSCM practices view and the DC view, to propose a set of relationships that posit that environmental, social, and economic sustainability measures of SSCM practices along with management and technological capabilities will have a significant influence on CA. The hypotheses are tested by applying structural equation modeling on a sample of 345 export-oriented RMG manufacturers in Bangladesh. The findings indicate that influence of social sustainability, along with management and technological capabilities, on CA is positive and significant. While the relationship between environmental and economic sustainability and CA were not significant.

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PurposeThis study investigates the influence of inclusion of nonfamily employees in family firms on their intellectual, social and affective engagement at the workplace. Furthermore, the framework proposed in the study considers the possible moderating influence of procedural justice in the above relationships.Design/methodology/approachA conceptual framework is developed with the support of the self-determination theory (SDT) and the social exchange theory. The study tests a set of hypotheses using survey data from 654 nonfamily employees working in private family firms in Malaysia.FindingsThe results reveal that inclusion has a positive and significant relationship with intellectual, social and affective engagement. While procedural justice moderates the association between inclusion and intellectual and affective engagement, it does not moderate the relationship between inclusion and social engagement.Research limitations/implicationsThe outcome of this study presents a nuanced understanding on how perceptions of inclusion of nonfamily employees by the dominant work group (DWG) (i.e. employees related to the firm owners) lead to positive firm-centric behavior among nonfamily employees.Practical implicationsThe study provides clues to family firm managers for creating a work environment where nonfamily employees perceive a sense of belongingness while their uniqueness is appreciated in order to be more engaged at the workplace.Social implicationsLittle is known about how diversity created within family firms by inclusion of nonfamily employees impacts organizations. The outcome of this study may reinforce the positive effects of inclusiveness in any social context.Originality/valueDiversity researchers have studied the influence of inclusion in areas related to sociology and psychology. However, there appears to be a dearth of studies in terms of how nonfamily employees would behave in family firms when they perceive a sense of inclusion in an organization dominated by employees who are related to the owners of the firm. Hence, this study appears to shed new light on how inclusion of nonfamily employees in family firms influences their behavior.

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PurposeDrawing on the combined theoretical perspectives offered by the sustainable supply chain management (SSCM) practices view and the resource-based view (RBV), this study aims to examine whether pursuit of environmental, social and economic sustainability measures of SSCM practices drive competitive advantage (CA) among fashion-apparel manufacturing organizations in an emerging economy. Furthermore, the study investigates whether the above relationships are mediated by productivity.Design/methodology/approachBased on a theoretically supported conceptual framework, a set of hypotheses are tested by applying partial least squares structural equation modeling on a sample of 345 export-oriented fashion-apparel manufacturing companies in Bangladesh. SmartPLS (v.3.2) is applied to analyze the path model through bootstrapping procedure.FindingsThe findings suggest that the direct relationship between social sustainability dimension of SSCM practices along and CA is positive and significant. While the direct relationships between environmental sustainability and CA, and economic sustainability and CA, were found to be non-significant. However, when productivity was applied as a mediator, all the paths were significant.Research limitations/implicationsThe study contributes to the strategic management literature by presenting a combined theoretical perspective proposing the idea that sustainable supply chain practices can influence both productivity and CA, where productivity is a pertinent mediator.Practical implicationsThe study presents evidence for ready-made garments manufacturers in emerging economies on how compliance with environmental, social and economic sustainability measures in the supply chain of apparel manufacturers leads to gains in CA for the firms. Additionally, the study shows that such measures must also have a net positive impact on productivity to be able to influence CA significantly.Originality/valueThis paper appears to be among the first study that presents a framework based on a combined view of SSCM practices and RBV to empirically investigate the role of productivity as a mediator in the relationships between the sustainability dimensions of SSCM practices and CA in apparel manufacturing.