Abstract

Abstract
Purpose: This study examines the relationship between socio-emotional wealth, human resource (HR) practices, and organisational identity to explain corporate entrepreneurship using the context of family firms.

Methodology: This study used a time-lagged research design and data collection from multiple sources to draw a unique dataset of family businesses operating in an emerging market. Using Hayes' process macros in combination with SPSS version 22, we analysed the dataset.

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.

Implications: The study suggests that both positive and negative effects of socioemotional 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, this study leverages the Conservation of Resources (COR) theory to treat the heterogeneous group of family employees. Second, we 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, our study contributes to the methodology. Finally, our study advocates for the impartial treatment of employees and the implementation of customised HR practices for family firms' long-term survival.