The interplay between socioemotional wealth and family firm psychological capital in influencing firm performance in hospitality and tourism

Abstract

The purpose of this study is to examine the impact of family firm specific non-financial dynamics [socioemotional wealth (SEW) and family firm psychological capital (FFPsyCap)] on firm performance. We develop a model of how family firms' SEW preservation goal negatively affects firm performance in terms of sales and the mitigating influence of FFPsyCap on this association. We test the model on a sample of 192 family firms in the Hospitality and Tourism (H&T) industry. Using a cross-sectional research design, surveys were solicited from small-and-medium size hotels in Turkey. Ordinary Least Squares technique is used to test our hypotheses. The results reveal that family firms' SEW preservation goal negatively affects firm performance in terms of sales, and the FFPsyCap mitigates this influence. Accordingly, if small-and-medium size firms in H&T can capitalize on non-financial strengths and minimize the impact of family-centric goals on firm outcomes, they can attain transgenerational sustainability and success.