Diversification of the family business in emerging countries from the perspective of socio-emotional wealth. Literature Review

Abstract

The objective of this paper is to identify the relevant aspects studied in connection to the diversification of the family business that develops its activity in a business environment with unstable characteristics, considering those socio-emotional aspects that are particularly important for the family owner, and that could impact this election. The review reflects that research on the topic is in an incipient state. Studies conducted in the context of Taiwan predominate - where it is customary to establish business groups supported by strong links generated from a dominant family - and the strategic option of diversifying has been strongly associated with the purpose of securing family ownership and continuity in the business through generational transfer, dimensions that make up socio-emotional wealth. This paper contributes to reflect on the influence that family objectives exert on business decision-making and highlights the need for further research on the reasons behind the strategic choices of these organizations in different emerging markets.