Socioemotional wealth of family business model innovation: facing exogenous shocks

Abstract

The COVID-19 pandemic is a major exogenous shock that generates vulnerability in various economic sectors. The objective of this research is to explore the presence, preservation, and influence of the socioemotional wealth of family business model innovation in civil organizations made for education managed by families facing the exogenous shock that is the COVID-19 pandemic, with the purpose of generating empirical evidence of the variations in the organizational and normative routines of the family business model and understanding what the abrupt change represents in the family’s system of organization. To achieve this goal, case study qualitative research was used, through a semi-structured interview based on the taxonomy of the conceptual model of the theoretical framework, which allowed the phenomenon to be explored in chronological depth within the contemporary context. The results showed that, faced with the vulnerability that comes with exogenous shocks, the school presented innovations that were shown in the firm’s value offering, firm’s revenue model, and in the firm’s value creation architecture. Empirical evidence of the presence of norms loaded with socioemotional wealth that establish the control and achievement of the family goals within the business model innovation was also shown. Finally, the presence and preservation of the socioemotional wealth within the civil organization was found. It is concluded that permeating family values in the organization encourages the identification of family members, as well as other organizations and parents, with the company. The latter consider their homes to be an extension of the school, and they were sensitized to understand that not investing in their children’s initial education can negatively impact their language, psychomotor development, and socialization.