Academic journal article E+M Ekonomie a Management

A Study on the Influence of Family on Family Businesses and Its Relationship to Satisfaction with Financial performance/Studie Vlivu Rodiny Na Rodinne Podnikani a Jeho Vztah Ke Spokojenosti S Financni Vykonnosti

Academic journal article E+M Ekonomie a Management

A Study on the Influence of Family on Family Businesses and Its Relationship to Satisfaction with Financial performance/Studie Vlivu Rodiny Na Rodinne Podnikani a Jeho Vztah Ke Spokojenosti S Financni Vykonnosti

Article excerpt

Introduction

Family businesses comprise one of today's most important types of businesses. The family-business interconnectedness consists of several components, as members of the family must fulfill many roles in the business such as owner, manager, and employee. An additional component that family businesses must also address is that of cultural relations.

Based on the aforementioned components, it is expected that family can bias the business, that is, family can influence the course of the business. This expectation is among the points that have been considered in this article. It is certainly possible that family members can influence the business, particularly in the role of manager or owner of the business; however, the influence is generally the result of a combination of several factors rather than a single factor. To state it more clearly, the influence of family on business is the result of a combination of various factors, such as ownership, management, institutionalization, succession relationships, similarities between family-business values, contributions of the family to the business, experience of the family with respect to business issues, and the influence of the founder, successor, and spouses. It is necessary to adopt an approach that can be used scientifically and that considers all of these components. A similar approach has been reported in the literature review, an approach that this article has also utilized.

Based on a survey of the literature, it was determined that the focus of this study should also cover the financial performance of the family-owned business. However, with the assumption that it would be difficult to obtain financial data, this article discusses how satisfied the top manager family member is with the financial performance of the business.

Subjects of discussion include the "influence of family" and "satisfaction of the top manager family member with the financial performance of the business," along with the relationship between these two concepts. The aim of this article was to explore the relationship between these two concepts. Toward this goal, research was conducted on family businesses within the organized industrial zones (OIZs) of Istanbul, Turkey. The purpose of the research was to establish the existence of a relationship between the influence of family on its business and the satisfaction of the top manager family member with the business's financial performance.

The article begins by presenting a brief definition of a family business based on specific criteria. After considering the various definitions for the influence of family on its own business, some conclusions are deduced from the various studies in the literature that either explicitly or implicitly define the role of family in the business. Based on these deductions, a general definition is provided for the concept of family influence and the components that constitute family influence. The family--power, experience, and culture (F-PEC) scale is introduced as a scale that considers some of the aforementioned components. The F-PEC scale was developed as an instrument to assess the influence of family on a family business, although other factors are considered regarding family influence. After describing satisfaction with financial performance as a main concept, a pilot study was conducted that illuminates the statistical structures of the two concepts: family influence and satisfaction with financial performance. The relationship between the two structures revealed from the scope of research was investigated, and the conclusions reached are presented. Few studies in the extant literature address and investigate the concept of family influence. Therefore, this article not only contributes to the few existing studies on this subject but also adds to the international literature on the current status of family businesses in Turkey with respect to this subject.

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