Non-family Employees in Family firms and Turnover Intentions: The Relevance of Identification and Justice Perceptions

Abstract

Abstract Many family firms hire and rely on non-family employees; therefore, the mutual benefits provided to both family and non-family members are important. Yet, the perspectives of non-family employees have been under researched. Drawing upon organizational identity and justice theories and the extant literature on family influence, this study examines non-family employees’ perceived family influence, family firm identification, family firm justice, and turnover intentions in a sample of 301 family business non-family employees. Path analysis results show that non-family employees’ perceived family influence can lead to family firm identification, in turn diminishing their turnover intentions. We also find that non-family employees’ perceptions of family firm justice moderate the relationship between non-family employees’ perceived family influence and family firm identification. We conclude by discussing implications.