Abstract:

This research is focus on family business development. This study aims to analyze whether social emotional wealth is directly improving the family company financial performance or indirectly mediated by Innovativeness in improving the family company financial performance. This study uses primary data with cencus that is at 41 private rural bank in Riau Islands province in Indonesia. In addition, this research also uses secondary data from the financial statements of private rural bank in Riau Islands province. The research method used is quantitative research methods that are explanatory. Model analysis technique and causal relationship between variables using partial least square (PLS) with Smart PLS 3.0 application. The final results of this research show that social emotional wealth is not directly influence significant to financial performance. However, social emotional wealth have a significant effect on innovativeness. Innovativeness can significantly influence positively...