Linkages between high-performance work practices and family-centered goals: implications for financial performance in family firms.

Purpose: This study explores what impact high-performance work practices (from the ability-motivation-opportunity framework) might have on financial performance among family firms and examines the mediating role played by family-centered goals. Design: The empirical approach is based on data collected from a sample of 339 Spanish small and medium-sized family enterprises operating in the industry and service sectors. To test our hypotheses, we apply a path analysis modeling tool to estimate both indirect and direct effects in mediator models. Findings: Our results indicate that the ability-motivation-opportunity framework has a significant impact on financial performance through the lens of family-centered goals. In addition, family businesses keen concern to preserve family wealth influences the effectiveness of high-performance work practices, making firms more socioemotionally oriented at the expense of economic impact. Originality: By examining the mediating effect of family-centered goals, this paper advances and extends socioemotional wealth theory in the context of human resource management by considering the relationships between human resource practices and firm performance as a mixed gamble approach. Research implications: This paper underscores the importance of integrating family aspirations into strategic human resource management design, emphasizing the significance of socioemotional wealth preservation. Practical implications: The findings offer practical insights for family managers, family owners, and human resource practitioners, suggesting the need to align human resource practices with family goals and to strategically balance socioemotional and financial wealth considerations. Family owners in key management positions must skillfully manage human resource strategies to harmonize family and firm goals