Four family business profiles - from peak performers to
underperforming businesses.
Our current and previous research has shown that the
entrepreneurial orientation of family businesses is a strong
contributor to their financial, social and non-financial
performance, and keeping the entrepreneurial spirt alive is a top
priority. But entrepreneurialism alone isn't enough. The pride
and emotional value that family members gain by owning and managing
the business - often described as their socioemotional wealth -
also contributes to the overall performance of their firm beyond
financial results, including family unity, loyalty to the business
and social impact.
When the level of entrepreneurial orientation and socioemotional
wealth are high, the company's performance also tends to be
high across every key measure. And, as might be expected, when the
entrepreneurial orientation and socioemotional wealth are low,
overall performance is generally low as well.
