Beyond exit: The afterlife of socioemotional wealth in business families

What happens to socioemotional wealth (SEW) after a family exits a business? Research suggests that SEW shapes family firm exit decisions, treating exit as the endpoint of socioemotional value. We challenge this assumption by developing a conceptual model that theorizes SEW as a multilocus endowment residing not only in ownership and governance control but also in family identity, relational embeddedness, reputational standing, and transgenerational aspirations. Building on recent reconceptualizations of SEW as dynamic, multidimensional, and socially embedded, we propose a moderated process model in which exit triggers, modes, and motives shape postexit SEW trajectories and preexit SEW configurations condition these effects. Three distinct postexit trajectories are theorized: (1) SEW attenuation/dissolution, (2) SEW preservation through symbolic continuity, and (3) SEW transformation and reinvestment through new organizational vehicles. By repositioning exit as a socioemotional reconfiguration event rather than a terminal outcome, we extend SEW research and advance a trajectory-based understanding of business-family continuity beyond ownership boundaries.

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Publication Details

Journal
Journal of Small Business Management
Published
2026-07-17
DOI
https://doi.org/10.1080/00472778.2026.2701807
Primary Topic
Family Business Performance and Succession
Type
article
Field-Weighted Citation Impact
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article

Beyond exit: The afterlife of socioemotional wealth in business families

Isabel C. Botero, Tomasz A. Fediuk, John Trimble
Journal of Small Business Management
Family Business Performance and Succession
article

Beyond exit: The afterlife of socioemotional wealth in business families

Isabel C. Botero, Tomasz A. Fediuk, John Trimble
article en

Abstract

What happens to socioemotional wealth (SEW) after a family exits a business? Research suggests that SEW shapes family firm exit decisions, treating exit as the endpoint of socioemotional value. We challenge this assumption by developing a conceptual model that theorizes SEW as a multilocus endowment residing not only in ownership and governance control but also in family identity, relational embeddedness, reputational standing, and transgenerational aspirations. Building on recent reconceptualizations of SEW as dynamic, multidimensional, and socially embedded, we propose a moderated process model in which exit triggers, modes, and motives shape postexit SEW trajectories and preexit SEW configurations condition these effects. Three distinct postexit trajectories are theorized: (1) SEW attenuation/dissolution, (2) SEW preservation through symbolic continuity, and (3) SEW transformation and reinvestment through new organizational vehicles. By repositioning exit as a socioemotional reconfiguration event rather than a terminal outcome, we extend SEW research and advance a trajectory-based understanding of business-family continuity beyond ownership boundaries.

Journal of Small Business Management
Andong Science University (KR), Bluegrass Care Navigators (US), University of Louisville Hospital (US), EAE Business School (ES)
Decent work and economic growth
Openalex Percentile: Top 4%
Family Business Performance and Succession
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