Entrepreneurship and the Impact of Managerial Role on Family Business Success

Abstract

Family businesses are commonly addressed as two separate entities: the family and the business (Weigel, Weigel, Berger, Cook & Del Campo, 1995; Hollander & Elman, 1988; Langsberg, 1983). This approach suggests that managerial procedures and decisions typically respond to the needs of only one or the other component. However, business and family decisions are interrelated, and the way that overlapping demands are managed may well have an impact on the long‐term success of family firms. Drawing on the insights of field theory (Lewin, 1951), the present study takes a longitudinal view of family business entrepreneurs, their managerial roles, and the impact of managerial role on business success over time. Rather than relying on individual respondents and a limited business sample, the study employed a pooled sample of data drawn from both the 1997 and 2000 versions of the National Family Business Survey (NFBS). On the basis of demographic information concerning family businesses and their owners, profiles of single‐ and dual‐role managers were drawn up, and the two types of managers were then compared in relation to the degree of perceived success. Significant demographic differences emerged according to managerial type. Significant longitudinal differences were also identified between single‐ and dual‐role managers with regard to both their perceived success – that is, their degree of personal satisfaction – and the financial success of the business.

Citation

Niehm, L.S. and Miller, N.J. (2006), "Entrepreneurship and the Impact of Managerial Role on Family Business Success", Journal of Research in Marketing and Entrepreneurship, Vol. 8 No. 1, pp. 75-94. https://doi.org/10.1108/14715200680001344