Effects of Family Influence on Satisfaction with Financial Results

By all accounts, family owned businesses comprise a §major proportion of all businesses worldwide. Family §businesses range in size from sole proprietorships §to the largest and most successful businesses in the §world, including retailing giant Wal-Mart. This §research explores the influence that family members §have on many aspects of the business organization, §from the labor force to the Board of Directors. §This study empirically tests the validity of the F-§PEC scale developed by Astrachan, Klein and Smyrnios §(2002) and, using structural equation modeling, §concludes family experience and culture have a §statistically significant, positive relationship §with satisfaction with financial performance in §family business. The results have far reaching §implications due to the magnitude of family business §organizations within the worldwide economy and §society. Building on marriage and family counseling §literature, this reseach takes the reader into the §heated debate on whether it is "good or bad" to have §family members involved in the business.