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When does family involvement produce superior performance in SME family business?

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  • González-Cruz, Tomás F.
  • Cruz-Ros, Sonia

Abstract

This study analyzes how family involvement leads to high performance in SME-family businesses (SME-FB). This research considers family involvement in management and firm governance, development of family governance, firm size, generations in FB, and ownership concentration. Results show three combinations that lead to high performance: 1) a large-enough SME-FB with a family CEO and a board with significant presence of non-family directors; 2) a large-enough SME-FB in its first generation, without family government structures, and that a non-familial top managerial team runs; 3) a large-enough SME-FB with low ownership concentration and family governance structures.

Suggested Citation

  • González-Cruz, Tomás F. & Cruz-Ros, Sonia, 2016. "When does family involvement produce superior performance in SME family business?," Journal of Business Research, Elsevier, vol. 69(4), pages 1452-1457.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:4:p:1452-1457
    DOI: 10.1016/j.jbusres.2015.10.124
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