This study is the first to measure the interaction between socioemotional wealth (SEW) and social capital—in the forms of community support and institution support—to their impact on the post-disaster recovery of small family businesses. Hierarchical multiple regression is used based on a sample of 79 small family businesses in Indonesia. Our findings suggest that family firms in post-disaster situation are able to pursue both SEW goals and economic gains, thus breaking off the trade-off between SEW vs. economic benefits. More specifically, we found that SEW shows its prominence on the interaction between SEW-community and SEW-institution. This implies that small family businesses in post-disaster context need to find synergy between socioemotional endowments and social capital to help them bounce back and recover.

Tags: disaster, economic recovery, sustainability