Abstract
While strategic planning is an important concept in management research, it has so far not been consistently studied in the context of family firms. With our paper, we introduce strategic planning to family firm research and develop hypotheses regarding the impact family influence has on SP and on subsequent firm performance. We propose that as family influence increases family firms attain a higher level of strategic planning and thus firm performance. Our hypotheses are empirically tested on a sample of 195 family firms. They show that family influence leads to higher levels of strategic planning. This positive relationship is particularly strengthened through family power and cultural alignment of family and firm interests. Additionally, our results show that higher levels of strategic planning in family firms lead to a better financial performance. Our paper contributes to family firm research by introducing strategic planning into the discussion on family firm performance and thus provides a starting point for combining strategy and family firm research.
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