Socioemotional Wealth and the Development of Family Business Group

There is limited knowledge of how an FBG emerges and develops. The purpose of this chapter is to examine the dynamics of SEW in FBG and how SEW impacts the strategy decisions and development of family firms into medium-sized business groups. We employed a narrative approach and used case studies of two medium-sized Chinese family businesses in Indonesia. We interviewed founders and subsequent generations about their family experiences, including their desire to own and run the FBG. This chapter shows how the creation and development of an FBG can be influenced by the founders’ experiences, critical events, and past, which shape their SEW and priorities. Further, SEW importance between generations occurs during the two cases studied, which influences the FBG development decisions. Heterogeneity of FBG in SEW also occurs and serves as a reference point for the development of FBGs.