Socioemotional Wealth and Transgenerational Survival of Family Businesses in Nigeria

Abstract

Family businesses make important contributions to employment, income generation, wealth creation, and intergenerational entrepreneurship in Nigeria, yet many experience difficulty surviving beyond the founding generation. Succession challenges, socio-cultural dynamics, competing family interests, and the need to balance family values with business continuity remain central concerns. This study examined the moderating effect of socioemotional wealth on the relationship between socio-cultural dynamics and the transgenerational survival of family businesses in Nigeria. A positivist philosophy, deductive approach, and quantitative cross-sectional survey design were adopted. Data were collected from founders, successors, family executives, and key decision-makers through a structured questionnaire. Of 400 questionnaires administered, 324 valid responses were retained and analysed using Partial Least Squares Structural Equation Modelling. The findings showed that socioemotional wealth significantly moderated the relationship between socio-cultural dynamics and transgenerational survival (β = 0.216, t = 4.271, p < 0.001). The structural model explained 62.4% of the variation in transgenerational survival (R² = 0.624) and demonstrated predictive relevance (Q² = 0.418). The results indicate that family identity, emotional attachment, legacy preservation, and commitment to the family business can reinforce the contribution of socio-cultural conditions to continuity across generations. The study concludes that socioemotional wealth is important to succession effectiveness, business continuity, and the long-term sustainability of family businesses in Nigeria.