Socioemotional Wealth, Transgenerational Succession and Sustainability of SMEs in Chhattisgarh: A Structural Equation Modeling Approach
DOI:
https://doi.org/10.66635/0xecz747Keywords:
Socioemotional Wealth, Transgenerational Succession, SME Sustainability, Family Business, Structural Equation ModelingAbstract
The present study examines the relationship between socioemotional wealth, transgenerational succession, and sustainability of family-owned small and medium enterprises (SMEs) in Chhattisgarh using Structural Equation Modeling (SEM). Family businesses in emerging economies are increasingly influenced by non-financial objectives such as family identity, emotional attachment, legacy preservation, and intergenerational continuity. Drawing upon Socioemotional Wealth Theory, Stewardship Theory, and the Resource-Based View, the study investigates how family-centered emotional values contribute to long-term business sustainability through succession mechanisms. A quantitative research design was adopted, and primary data were collected from 286 owners, successors, and senior managerial members of family-owned SMEs across manufacturing, trading, and service sectors in Chhattisgarh. The data were analyzed using SmartPLS software. The findings reveal that socioemotional wealth significantly influences transgenerational succession and sustainability of SMEs. The study also confirms that effective succession planning positively contributes to organizational continuity and long-term sustainability. The structural model demonstrated strong explanatory power, indicating that emotional ownership and succession readiness function as strategic resources for sustaining family enterprises. The study contributes to family business literature by integrating emotional and succession-related dimensions within the broader sustainability discourse of SMEs in emerging regional economies.
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