The effect of family business size as firms grow: a USA‐France comparison

Abstract

PurposeThe purpose of this paper is to investigate how family businesses change as they grow in size, and to compare differences between the USA and France.Design/methodology/approachThe research design is survey research, statisticallyt‐testing 12 hypothesized differences between smaller and larger firms in the USA (n=159) and in France (n=116).FindingsThe research finds that both countries' larger firms have significantly (p< 0.05) more non‐family members within top management and make greater use of outside consultants, advisors, and professional services than smaller firms. However, family businesses in France had no other significant differences, while those in the USA had four. Larger US firms have a smaller percentage of women family members working in the firm and less conflict and disagreement between family members; they also spend more time in strategic management activities, and use more sophisticated methods of financing.Research limitations/implicationsThere are some variations between the two country samples.Practical implicationsUnderstanding whether and how family business management activities, styles and characteristics change with growth can help those who own and manage such businesses. It can also be of value to those who advise and assist family businesses, as well as researchers who study them.Originality/valueThis is the first study to analyze the effect of firm size on family business management and to conduct a cross‐national comparison.