Socioemotional wealth and SME Family Business Performance Lilik Andriyani, Yulinda Devi Pramita, Veni Soraya Dewi
Universitas Muhammadiyah Magelang
Abstract
Families mostly manage small and Medium Enterprises (SMEs). Family involvement aims to maintain a family business so that it can live sustainably. Family businesses, especially in Indonesia, still have limitations, especially in terms of managerial skills, partnership relations, information technology capabilities, and the limitations of other internal SME factors. This limitation results in low performance and competitiveness. The purpose of this study is to examine the social impact of families by using five dimensions of socioemotional wealth (SeW) construction on SME performance. Improved performance affects improving the reputation and transgenerational family business. This study used 100 SME samples in Magelang. Through multiple regression analysis, the results of this study indicate that identification of family members with companies and the renewal of family ties through dynamic succession in SMEs influences performance improvement. However, the dimensions of family control and family influence, social ties, and emotional ties of family members do not indicate that it can improve company performance.
Keywords: socioemotional wealth, SME^s Performance, SeW dimensions
