Untangling non-economic objectives in family & non-family SMEs: A goal systems approach

Abstract

Although the study of non-economic objectives is particularly prominent in family business research, non-family firms set and pursue similar goals. Extant literature also explains why family firms pursue non-economic goals; however, less is understood regarding the ways in which family ownership impacts the outcomes associated with such objectives. Grounded in the ongoing study of family business strategy, this article explores two sets of non-economic goals – family and community objectives – in SMEs with varying levels of family ownership. Applying goal systems theory to analyze the configurations of goals and means among the SMEs in our sample, we find that family ownership interacts with the presence of non-economic objectives to influence firm performance.