After the Ground Stopped Shaking: Socioemotional Wealth and Social Capital in Post-Disaster Recovery of Small Family Businesses

University essay from Högskolan i Jönköping/Internationella Handelshögskolan; Högskolan i Jönköping/Internationella Handelshögskolan


This study is the first to measure the interaction of socioemotional wealth (SEW) and social capital, consisting of community and institution, and their impact in post-disaster recovery of small family businesses. Hierarchical multiple regression is used based on a sample of 79 small family businesses in Indonesia. Our findings suggest that family firms in post-disaster situation are able to pursue both SEW goals and economic gains, thus breaking the trade-off between SEW vs. economic benefits. More specifically, we found that SEW—as a strategic decision making tool—shows its prominence on the interaction between SEW-community and SEW-institution. This implies that small family businesses need to find synergy between socioemotional endowments and social capital to help them to bounce back and recover after a disaster. 

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