The role of emotional labor and display latitude in preserving socioemotional wealth in family businesses

Research on emotions is gaining momentum in the family business literature. However, the literature remains unclear on the psychological foundations of how managing one’s emotions can contribute to socioemotional wealth goals in a family business. We contribute to the study on emotions in the family business literature by linking the ‘Socioemotional Wealth’ (hereafter ‘SEW’) perspective with the ‘Emotional Labor’ concept to elaborate on the microfoundations of SEW. Following an interpretive qualitative methodology, abductive data analysis was conducted using thematic analysis techniques with over fifteen hours of interview material collected from family business owners/members. Results indicated that family members’ perception of SEW objectives and their emotional labor are linked and that this relationship has utility in the preservation of SEW. We also found that, when exercised inappropriately, latitude in emotional displays, also known as ‘display latitude’, could potentially deplete SEW. Our findings extend the family business literature on emotion management and contribute to our understanding of the emotions-related mechanisms associated with SEW preservation and depletion in family firms. Our results have practical implications for family businesses regarding the need for family members to strike a balance between emotional labor and display latitude for the sake of preserving SEW.