Socioemotional Wealth and Financial Performance of Single-Family-Owned Food Processing Firms: Evidence from Tanzania

Abstract

This study assessed how Socioemotional Wealth (SEW) influences the financial performance of single-family-owned firms in the same industry. Previous research on family firms has yielded conflicting results. Thus, this study fills a gap. Data is collected from firms’ owners using a structured questionnaire. Family continuity, family prominence, and family enrichment are used to measure the SEW. The financial performance was subjectively assessed. Multiple regression analysis is used to examine the data obtained from 267 firms. The findings suggest that the three dimensions of SEW – family continuity, family enrichment and family prominence – significantly influence single-family-owned firms’ financial performance (p = 0.00). This study adds context-specific insights, empirical facts, and a deeper understanding of family-owned firms’ subjective financial performance to the SEW development literature—the discipline of SEW theory and its application benefit from its research and practice implications. Future research should examine how firm culture affects SEW-financial performance ties by employing a larger sample.

Keywords

• socioemotional wealth
• financial performance
• family-owned firms