Document Type

Research Paper

Abstract

The aim of this research proposal is to analyze the impact of family involvement over change and performance of small and medium size family businesses. Three family business theories mostly used by previous researchers namely: entrepreneurial, stakeholder and stewardship theories will be used to explore relationships between ownership, change management and the performance objectives of family firms. This study will examine the relationship between Familiness (that is, family ownership) and firm performance by considering the influence of family management, family control, and firm size using the family influence scale (the familiness-power, experience, and culture scale [F-PEC]) presented by Klein, Astrachan, and Smyrnios (2005). A set of questionnaires will be sent to family firms across the United States of America, Western European countries (e.g. United Kingdom, Spain, Italy, etc.) Taiwan, Romania and the data obtained from these firms, together with range of performance measures and objectives will be examined to assess this relationship, and to ascertain if family ownership is positively or negatively associated with firm performance. Information from other studies has been used for the development of this study to understand various variables that can be used to identify what constitutes a family firm. The findings from this study will be used to establish whether potential family-ownership effects are more likely to be realized when family ownership is combined with active family management and control in small- and medium-sized enterprises (SMEs).

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