The strategic role of proactivity and socioemotional wealth in family firm success

Family firms pursue financial objectives and non-financial goals associated with family involvement, often resulting in strategic behaviors distinct from those of non-family firms. Among these goals, socioemotional wealth (SEW) has emerged as a key driver of decision-making and long-term orientation. Furthermore, proactive strategic behavior is increasingly recognized as an important determinant of firm performance. However, empirical evidence on the joint influence of proactivity and SEW on family firm performance remains limited, particularly in emerging economies. This study develops and empirically tests a conceptual model examining the relationships among proactivity, SEW, and firm performance in family firms. Data from 149 chief executive officers of Chilean family firms were analyzed using partial least squares structural equation modeling. The results indicate that proactivity positively affects firm performance and that SEW positively moderates this relationship. These findings contribute to family business and innovation research by demonstrating that proactive behavior and socioemotional considerations can operate as complementary drivers of performance. From a practical perspective, the results highlight the importance of aligning proactive initiatives with socioemotional priorities to enhance competitiveness and long-term sustainability in uncertain environments.