Examining the Link Between “Familiness” and Performance: Can the F-PEC Untangle the Family Business Theory Jungle?

Authors

  • Matthew W. Rutherford,

    Corresponding author
    1. Management at Virginia Commonwealth University, Department of Management, Richmond, Virginia
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  • Donald F. Kuratko,

    Corresponding author
    1. Entrepreneurship & Executive Director at Indiana University, Kelley School of Business, Johnson Center for Entrepreneurship and Innovation, Bloomington, Indiana
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  • Daniel T. Holt

    Corresponding author
    1. Department of Systems and Engineering Management, Air Force Institute of Technology, AFIT/ENV, Hobson Way, Wright Patterson, Ohio
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Matthew W. Rutherford, tel.: (804) 828-1732; e-mail: mwrutherford@vcu.edu, to Donald F. Kuratko at dkuratko@indiana.edu, and to Daniel T. Holt at daniel.holt@afit.edu.

Abstract

Family business research appears to be caught in a “jungle” of competing theories in regards to familiness and performance. This study provides a further empirical examination into that relationship. We employ a family influence scale (the familiness-power, experience, and culture scale [F-PEC]) presented by Klein, Astrachan, and Smyrnios in an attempt to assess the relationship between familiness and performance in 831 family businesses. The resulting regression analysis adds to the current state of the literature by demonstrating significant and interesting results. Specifically, familiness showed associations with revenue, capital structure, growth, and perceived performance; however, the relationships were both positive and negative, thus casting doubt upon the F-PEC as a vehicle for untangling the jungle. We conclude with discussion and implications.

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