This research examines when and why long-term orientation and concerns for preserving socioemotional wealth are associated with the transgenerational orientation-family control relationship in micro, small and medium-sized enterprises (MSMEs). Drawing on socioemotional wealth (SEW) and socioemotional selectivity theory (SST), we conceptualize concern for preserving SEW as an emotional-salience indicator and long-term orientation as a strategic temporal orientation and test a three-way interaction among these factors. Across 218 Indian family micro, small and medium-sized enterprises (MSMEs), the positive association between transgenerational orientation and family control shows a paradoxical attenuation when both concern for preserving socioemotional wealth and long-term orientation are high. Firm-level results show that transgenerational orientation relates positively to family control when concern for preserving SEW is low. However, this association neutralizes under high concern for preserving SEW, regardless of long-term orientation. This pattern suggests a push-pull dynamic. Transgenerational goals support control retention. However, salient socioemotional priorities can shift attention toward harmony-preservation and away from formal control. By integrating SEW and SST, the study specifies when socioemotional priorities relate to reinforced or relaxed governance in family MSMEs. The findings offer guidance for aligning succession planning with control structures, while the cross-sectional design precludes causal inference.
Rodrigues et al. (Wed,) studied this question.