Current State of Knowledge on the Performance Gaps Between Family and Non-Family Firms
- 99 Downloads
Our research is focused on the existing evidence of performance gaps between family and non-family firms. Family businesses are considered to be different from non-family companies because they are led (or managed) by members of a family with a vision of continuing the business across multiple generations. Moreover, family members are supposed to be altruistic towards each other, following obligations which are part of normative moral order in most cultures around the world. At the same time, family businesses form a substantial part of the world’s economics, representing, for instance, one third of all the companies listed in the Standard & Poor 500. In some collectivist cultures, especially in South and East Asia or Latin America, family businesses are becoming the prevalent form of business.
A question which necessarily arises is whether family businesses perform better than non-family businesses, and why. The effect of family involvement is sometimes referred to as “family effect”....
JELL10 L33 L50
This work was supported by the Internal Grant Agency of the University of Economics in. Prague, project no. F3/9/2013 “Family businesses in the Czech republic and their performance”.