Indonesia Conference Directory

Families mostly manage small and Medium Enterprises (SMEs). Family involvement aims to maintain a family business so that it can live sustainably. Family businesses, especially in Indonesia, still have limitations, especially in terms of managerial skills, partnership relations, information technology capabilities, and the limitations of other internal SME factors. This limitation results in low performance and competitiveness. The purpose of this study is to examine the social impact of families by using five dimensions of socioemotional wealth (SeW) construction on SME performance. Improved performance affects improving the reputation and transgenerational family business. This study used 100 SME samples in Magelang. Through multiple regression analysis, the results of this study indicate that the dimensions of family control and family influence, social binding ties, emotional attachment of family members, and renewal of family ties through dynastic succession in SMEs influence performance improvement. But the dimensions of identification of family members with the company does not indicate that it can improve company performance.