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Purpose

The study aims to reveal the strategic renewal (SR) of non-family employees in family small and medium enterprises (SMEs) with the effects of transformational board member leadership and psychological ownership (PO) dimensions.

Design/methodology/approach

Non-family employees at 82 export and import family firms (FFs) in Vietnam were selected for the study, which used a partial least square structural equation modelling (PLS-SEM) approach.

Findings

Family board members with transformational leadership (TL) qualities and PO play an essential role in developing non-family employee SR.

Originality/value

The authors grant advanced family roles and relationships knowledge to the renewal and transformation of FFs' strategies and organisational structures.

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