How to build a brand-oriented family firm: The impact of socioemotional wealth (SEW) dimensions

Literature has recently increased its attention on brand management in family firms. Blurring boundaries between family and business, divergent interests of family and non-family members, or a peculiar strategic decision-making framework in which the family's socioemotional wealth (SEW) may be prioritized make brand management particularly complex. We contribute to the literature through a pioneering study of the benefits of brand orientation for family firm performance, and by examining how the different SEW dimensions drive the adoption of a brand-oriented culture in this kind of firm. Empirical findings from a representative sample of 120 Chilean family firms reveal the positive impact on brand orientation of binding social ties, renewal of family bonds, and identification with the family firm, and confirm that brand orientation enhances performance. Brand orientation thus emerges as a key, yet hitherto neglected, mediating factor to reconcile SEW preservation with economic performance, which entails relevant theoretical and managerial implications.

Automated summary

Literature has recently focused on brand management in family firms, considering the complexities caused by blurring boundaries between family and business, divergent interests, and unique strategic decision-making frameworks. A pioneering study on the benefits of brand orientation for family firm performance and the influence of different dimensions of socioemotional wealth (SEW) on adopting a brand-oriented culture was conducted using empirical findings from 120 Chilean family firms. The results suggest that binding social ties, renewal of family bonds, and identification with the family firm positively impact brand orientation and that brand orientation enhances performance. This highlights the importance of brand orientation as a mediating factor in reconciling SEW preservation and economic performance, with implications for theory and management.