Family matters: are family firms distinguished in environments with resource constraints?

Abstract

Family Firms (FF) have received significant attention as organizations that distinguish themselves due to the overlap between ownership, operation and family aspects that determine strategy. While it is established that FF are more conservative with risk, and concentrate ownership within trusted circles; they remain interesting for more risky activities such as International Entrepreneurship (IE). With island environments often being overlooked, they offer distinguishing environments that can further inform the academic community as to how FF behave with regards to opportunities beyond domestic markets. Island markets are, due to small size, on the receiving end of global developments, and have alternative priorities. This study examines 250 firms located in ten islands, Bahamas, Bahrain, Barbados, Cyprus, Iceland, Fiji, Jamaica, Malta, Mauritius, and Trinidad/Tobago over the 2009-2020 period, and addresses how the island FF performs vis a vis Non-Family Firms (NFF). The study finds evidence in support of FF balancing financial and non-financial indicators.