Abstract

Purpose This study aims to examine the relationship between socio-emotional wealth, human resource (HR) practices and organisational identity to explain corporate entrepreneurship using the context of family firms. Design/methodology/approach This study used a time-lagged research design and data collection from multiple sources to draw a unique data set of family businesses operating in an emerging market. Using Hayes’ process macros in combination with SPSS version 22, we analysed the data set. Findings The study finds that socio-emotional wealth positively influences corporate entrepreneurship among family-related employees but negatively impacts corporate entrepreneurship among non-family employees. Furthermore, the study also probes the mediating role of organisational identification and the moderating role of HR practices. Lastly, a unique moderated mediation model was conceptualised and tested to deal with the challenge of complex HR practices in family firms. Practical implications The study suggests that both positive and negative effects of socio-emotional wealth on corporate entrepreneurship exist among family and non-family employees, which is conditional upon biased HR practices. Originality/value This study adds originality and value in several ways. First, it leverages the Conservation of Resources (COR) theory to treat the heterogeneous group of family employees. Second, it explained bifurcated HR practices in emerging markets by examining family businesses operating in the Gulf Cooperation Council (GCC). Thirdly, given the scarcity of time-lag research and heterogeneity in the datasets, it contributes to the methodology. Finally, it advocates for the impartial treatment of employees and the implementation of customised HR practices for family firms’ long-term survival.