Tracing the Roots of Innovativeness in Family SMEs: The Effect of Family Functionality and Socioemotional Wealth

By integrating literature on family functionality, family firms, and socioemotional wealth (SEW), we develop a theoretical model explaining how family functionality and SEW dimensions influence firm innovativeness. Our multigroup structural equation model on two samples of family small and medium‐sized enterprises (SMEs) shows that family functionality is positively linked to SEW, whereas divergences emerge on the effect of different SEW...