Socio-emotional wealth of family business as a source of competitive advantage

Bc. Safarli Safarli

Master's thesis

Abstract:

Family business is always specific type of activity that involves the different levels of management by the family members and attracted staff. The socio-emotional factors of the family business could be considered as the key aspects for the further development during the years. The research aimed to prepare the proper analysis of the socio-emotional wealth of the selected family business, elaborating the factors and aspects that affect the competitive advantage on the market. The qualitative analysis became the key basis of the current research for more deep understanding of the positive and negative aspects. Two key members of the family (farther and son) being the main managers of their family business answered 14 questions during the interviews in the framework of FIBER and REI scale analysis. The analysis of selected family business by bivalent attributes showed that the selected family business lies in respect for the family and tradition, mutual awareness of family security, shared identity, and efforts to preserve the family business, the past efforts of the farther and his legacy to the next generations. According to the answers and analysis of the selected family business activity the SWOT analysis was conducted where the key positive and negative factors were elaborated and described. The selected firm appears to be representative of the ideal family business. In FIBER and REI terms, its values of socio-emotional wealth are at a very high level, giving the company a distinct competitive advantage.

Abstract:

Family business is always specific type of activity that involves the different levels of management by the family members and attracted staff. The socio-emotional factors of the family business could be considered as the key aspects for the further development during the years. The research aimed to prepare the proper analysis of the socio-emotional wealth of the selected family business, elaborating the factors and aspects that affect the competitive advantage on the market. The qualitative analysis became the key basis of the current research for more deep understanding of the positive and negative aspects. Two key members of the family (farther and son) being the main managers of their family business answered 14 questions during the interviews in the framework of FIBER and REI scale analysis. The analysis of selected family business by bivalent attributes showed that the selected family business lies in respect for the family and tradition, mutual awareness of family security, shared identity, and efforts to preserve the family business, the past efforts of the farther and his legacy to the next generations. According to the answers and analysis of the selected family business activity the SWOT analysis was conducted where the key positive and negative factors were elaborated and described. The selected firm appears to be representative of the ideal family business. In FIBER and REI terms, its values of socio-emotional wealth are at a very high level, giving the company a distinct competitive advantage.

Keywords

Bivalent attributes, family business, FIBER, REI, socio-emotional wealth.

Language used: English

Date on which the thesis was submitted / produced: 20. 4. 2022

Thesis defence

• Date of defence: 8. 6. 2022
• Supervisor: Ing. Andrea Tomášková, Ph.D.
• Reader: Ing. Přemysl Písař, Ph.D.

University of Finance and Administration

Master programme / field:
Economics and Management / Economics and Management