Exploring the influence of the family upon firm performance: Does strategic behaviour matter?. (December 2014)

• Record Type: Journal Article
• Authors: Basco, Rodrigo
• Is Part Of: International small business journal. Volume 32:Number 8(2014)
• Page Start: 967
• Page End: 995
• Publication Date: 2014-12
• Subjects: configurative approach -- decision-making -- essence approach -- family business -- firm performance -- strategy behaviour; Small business -- Periodicals; 338.64205
• DOI: 10.1177/0266242613484946
• Languages: English
• ISSNs: 0266-2426

Abstract

This article critically analyses the fit between decision-making and strategy in the performance of family firms. Based on a configurative methodology, survey data were collected from privately owned firms. From analysis of this data, we conclude that the advantages and disadvantages of family participation within the business must acknowledge the strategic context utilised by the firm to compete in the marketplace. Family firms perform better if they follow a product/reputation differentiation strategy and balance their family and business-oriented decision-making, or if they follow a low-cost strategy and put the business first in their decision-making.