Family Business Performance: A Perspective of Family Influence

Abstract

Purpose -The purpose of this study is to analyze the relationship between family influence, measured through power, experience and culture (F-PEC) and family business (FB) performance.Performance is measured from a financial and non-financial perspective.Design/methodology/approach -Empirical study using the quantitative method and data collected through a questionnaire, answered by 169 Portuguese family firms.The survey design was based on prior research of FB performance and the F-PEC questionnaire.The exploratory factor analysis and multiple linear regression models are used.Findings -The results indicate a negative relationship between experience and financial performance, a positive association between a culture of family commitment and performance (financial and noneconomic goals), and a positive relationship between a culture of family values and non-economic goals.The results show the importance of agreement between the firm and the family goals.Family influence on FB performance cannot be seen only from a positive (stewardship theory) or a negative (agency theory) perspective.Originality/value -Commitment increases financial performance and the achievement of non-economic goals (perpetuity and family assets).It is important to study how a culture of commitment leads to superior performance.

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