Abstract
This study highlights the influence of selected business family values on the success of small and medium-sized family businesses. Success, for the purpose of this study, is measured using two variables, namely Harmonious family relationships and Perceived future continuity. The primary objective of this study is twofold: firstly, to identify the potential influence of selected business family values on the success of family businesses and secondly, to make practical recommendations on actions that families in business can take to ensure harmonious family relationships and the future continuity of their family businesses. The target population of this study was small and medium-sized family businesses in South Africa, and a total of 931 individual questionnaires were returned from 173 family businesses. The data collected was subjected to various statistical analyses, including exploratory factor analysis, calculating Cronbach alpha coefficients, and multiple linear regression analysis. The findings of this study show that the more family members perceive fair treatment in the family business, the more harmonious family relationships and perceptions of business continuity will be. In addition, the perceived level of trust, commitment and effective communication has a positive influence on family harmony and business continuity. This study has added to the empirical body of family business research, and provides an important first step in gaining insights into selected family business values that influence the effective functioning of family businesses.
Highlights
Introduction and problem statementFamily businesses are unique in the sense that a single family has a significant influence on the business (Hall & Nordqvist, 2008: 51)
The results of this study show that the participating family members in this study perceived the following family business values as influencing Harmonious family relationships: Trust and commitment, Peace, Fairness and Openness
Family members whose relationships are characterised by mutual trust and respect, who are committed to continue the business in the future, experience a lack of conflict in the family business, have the perception of fair treatment in the business and experience open communication, are more likely to experience good human relationships and family harmony among family members
Summary
Introduction and problem statementFamily businesses are unique in the sense that a single family has a significant influence on the business (Hall & Nordqvist, 2008: 51). Various authors highlight that the greatest threat to the growth, success and survival of a family business is related to family relationships (Goldberg, 1996; Venter, 2003; Ward, 1997; Ward, 2004). It is from conflict-laden family relationships that many family business issues emanate (Molly, Laveren & Deloof, 2010), and managing both family and business seems to be a constant challenge (Schuman, Stutz & Ward, 2010: 2). The family should be clear about the positive link between the longevity of the business and the well-being of the family (Ibrahim, McGuire & Soufani, 2009: 2-4; Venter & Boshoff, 2006: 29)
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