The relationship between family management and performance: A configurational approach in exploring the role of socioemotional wealth and generational stage

We examine how socioemotional wealth (SEW) influences the relationship between family management and firm performance, constructively replicating and extending Sciascia, Mazzola, and Kellermanns (2014). We apply fuzzy-set qualitative comparative analysis on a sample of 277 privately-owned US family firms and measure SEW both directly and via unidimensional proxies. In agreement with the authors’ findings, our results show that family management relates positively to performance in later-generation family firms. Our findings also show that SEW is sufficient for high family firm performance, challenging the view that family firms face a trade-off between pursuing affective goals and achieving profitability. Both findings, however, hold only when SEW is directly measured, underscoring the importance of adopting a multidimensional and universally accepted operationalization of SEW for an accurate and robust understanding of its true relationship to family firm outcomes.