Strategies to Improve Employee Performance in Family-Owned Businesses: The Role of Subjective Well-Being, Self-Esteem, and Social Exchange

Authors

  • Tan Evan Tandiyono Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945, Surabaya, Jawa Timur, Indonesia
  • Ida Aju Brahmasari Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945, Surabaya, Jawa Timur, Indonesia
  • Siti Mujanah Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945, Surabaya, Jawa Timur, Indonesia

DOI:

https://doi.org/10.38035/dijms.v6i6.5380

Keywords:

Family-Owned Businesses, Employee Performance, Subjective Well-Being, Self-Esteem, Social Exchange

Abstract

This study investigates the influence of subjective well-being, self-esteem, and social exchange on employee performance within family-owned businesses (FOBs) in the Gerbang Kertosusila region. Unlike traditional family firms, the FOBs in this study are characterized by family members acting solely as shareholders, while operational management is delegated to external professionals and relatives. Using a quantitative causal-explanatory approach, data was collected from 308 employees across 10 family-owned companies and analyzed using Structural Equation Modeling (SEM) with AMOS 26. The findings reveal that subjective well-being, self-esteem, and social exchange each have a significant positive effect on employee performance. These results highlight the importance of psychological and relational factors in enhancing the productivity of employees within family-owned enterprises. By emphasizing emotional well-being, individual self-worth, and mutual workplace relationships, this study provides valuable insights for FOB leaders in fostering a high-performing organizational culture supported by strong internal social dynamics.

References

Amalia, A. R., & Hidayat, D. R. (2023). Pengaruh Kekerasan Verbal Terhadap Self Esteem Remaja Akhir Di Kota Bekasi. Jurnal Fusion, 3(9).

Amalia, I. D. N., Pujianto, W. E., Boyas, J. R., & Kamila, E. R. (2025). Meaning Of Work: Quality Work Life And Experiences Of Women Leader. Islamic Business and Management Journal, 8(1), 71-89.

Aronoff, C. E., & Ward, J. L. (1995). Family-owned businesses: a thing of the past or a model for the future?. Family Business Review, 8(2), 121-130.

Bryson, A., Forth, J., & Stokes, L. (2017). Does employees’ subjective well-being affect workplace performance?. Human relations, 70(8), 1017-1037.

Cid-Sillero, S., Pascual-Sagastizabal, E., & Martínez-de-Morentin, J. I. (2020). Influence of self-esteem and attention on the academic performance of ESO and FPB students. Revista de Psicodidáctica (English Ed.), 25(1), 59-67.

Grover, S. L. (2021). Different respect motivates different people: How self-esteem moderates the effects of respect on performance. Personality and Individual Differences, 168, 110312.

Hmieleski, K. M., & Sheppard, L. D. (2019). The Yin and Yang of entrepreneurship: Gender differences in the importance of communal and agentic characteristics for entrepreneurs' subjective well-being and performance. Journal of Business Venturing, 34(4), 709-730.

Lin, C. P., Chiu, C. K., & Liu, N. T. (2019). Developing virtual team performance: an integrated perspective of social exchange and social cognitive theories. Review of managerial science, 13(4), 671-688.

Luo, Y., Gao, W., & Liu, X. (2022). Longitudinal relationship between self-esteem and academic self-efficacy among college students in China: evidence from a cross-lagged model. Frontiers in Psychology, 13, 877343.

Man, M., & Ticu, C. (2015). Subjective well-being and professional performance. Land Forces Academy Review, 20(2), 211.

Mohammad, T., Darwish, T. K., Singh, S., & Khassawneh, O. (2021). Human resource management and organisational performance: The mediating role of social exchange. European Management Review, 18(1), 125-136.

Vatankhah, S. (2021). Dose safety motivation mediate the effect of psychological contract of safety on flight attendants' safety performance outcomes?: A social exchange perspective. Journal of Air Transport Management, 90, 101945.

Wu, L. Z., Sun, Z., Ye, Y., Kwan, H. K., & Yang, M. (2021). The impact of exploitative leadership on frontline hospitality employees’ service performance: A social exchange perspective. International Journal of Hospitality Management, 96, 102954.

Downloads

Published

2025-08-12

How to Cite

Tandiyono, T. E., Brahmasari, I. A., & Mujanah, S. (2025). Strategies to Improve Employee Performance in Family-Owned Businesses: The Role of Subjective Well-Being, Self-Esteem, and Social Exchange. Dinasti International Journal of Management Science, 6(6), 1448–1458. https://doi.org/10.38035/dijms.v6i6.5380

Issue

Vol. 6 No. 6 (2025): Dinasti International Journal of Management Science (July - August 2025)

Section

Articles

License

Copyright (c) 2025 Tan Evan Tandiyono, Ida Aju Brahmasari, Siti Mujanah

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. The copyright on each article belongs to the author(s).
  2. The author acknowledges that the Dinasti International Journal of Management Science (DIJMS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
  3. Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Management Science (DIJMS).