This article analyzes the impact of not controlling for “demographic sample” differences on research results in the area of comparative family/nonfamily business research. Using different statistical methods with and without control for “demographic sample” differences, the results show that controlling for these firm demographics in a bivariate as well as a multivariate framework is very important to discover “real” differences between family and nonfamily firms. We found “real” differences for export, budgeting, variable reward systems, profitability and gender, educational degree, and tenure of the CEO. Strategy, networking, long-term planning and control systems, perceived environmental uncertainty, growth, and management training, classified by prior empirical research as different between family and nonfamily firms, do not differ.
Get full access to this article
View all access options for this article.
References
1.
Allison, P.D. (1999). Logistic regression using the SAS system. SAS Institute.
2.
Coleman, S., & Carsky, M. (1999). Sources of capital for small family-owned businesses: Evidence from the National Survey of Small Business Finances. Family Business Review, 12(1), 73-85.
3.
Cromie, S., Stephenson, B., & Monteith, D. (1995). The management of family firms: An empirical investigation . International Small Business Journal, 13(4), 11-34.
4.
Daily, C.M., & Dollinger, M.J. (1992). An empirical examination of ownership structure in family managed and professionally managed firms . Family Business Review, 5(2), 117-136.
5.
Daily, C.M., & Dollinger, M.J. (1993). Alternative methodologies for identifying family- versus nonfamily-managed businesses. Journal of Small Business Management, 31(2),79-90.
6.
Daily, C.M., & Thompson, S.S. (1994). Ownership structure, strategic posture and firm growth: An empirical examination. Family Business Review, 7, 237-249.
7.
Davis, J.A. (1982). The influence of life stage on father-son work relationships in family companies. Doctoral dissertation, Harvard Business School, cited in Dyer & Handler. ( 1994). Entrepreneurship and family business: Exploring the connections . Entrepreneurship Theory and Practice, 19(1), 71-83.
8.
Davis, P. (1983). Realizing the potential of the family business . Organizational Dynamics, 12, 47-56.
9.
Demetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. Journal of Political Economy, 93, 1155-1184.
10.
Donckels, R., & Fröhlich, E. (1991). Are family businesses really different? European experiences from STRATOS. Family Business Review, 4(2), 149-160.
11.
Dyer, W.G. (1994). Potential contributions of organizational behavior to the study of family owned businesses. Family Business Review , 7(2), 109-131.
12.
Dyer, W., Jr., & Handler, W.G. (1994). Entrepreneurship and family business: Exploring the connections. Entrepreneurship: Theory and Practice, 19(1), 71- 84.
13.
Gallo, M.A. (1995). The role of family business and its distinctive characteristic behavior in industrial activity. Family Business Review, 8(2), 83-97.
14.
Gudmundson, D., Hartman, E.A., & Tower, C.B. (1999). Strategic orientation: Differences between family and nonfamily firms. Family Business Review, 12(1), 27-39.
15.
Harris, D., Martinez, J.I., & Ward, J.L. (1994). Is strategy different for the family-owned business ? Family Business Review, 7(2), 159-174.
16.
Hufft, J.E.M. (1997). Comparison of the ownership and growth of family businesses and small firms. Presented at the 42nd ICSB World Conference. San Francisco, CA.
17.
Kets de Vries, M.F.R. (1993). The dynamics of family controlled firms: The good and the bad news. Organization Dynamics, 21(3), 59-72.
18.
Lyman, A.R. (1991). Customer service: Does family ownership make a difference? Family Business Review, 4(3), 303-324.
19.
Menard, S. (1995). Applied logistic regression analysis. Sage Publications Series: Quantitative Applications in the Social Sciences. No 106. Thousand Oaks, CA: Sage Publications.
20.
McCann, J.E., III, Leon-Guerrero, A.Y., & Haley Jr., J.D. (2001). Strategic goals and practices of innovative family businesses. Journal of Small Business Management, 39(1), 50-59.
21.
Miles, R.E., & Snow, C.C. (1978). Organizational strategy, structure and process . New York: McGraw-Hill.
22.
Mishra, C.S., & McConaughy, D.L. (1999). Founding family control and capital structure: The risk of loss of control and the aversion to debt . Entrepreneurship: Theory and Practice, 23(4), 53-64.
23.
Porter, M. (1980). Competitive strategy. Techniques for analyzing industries and competitors. New York: Free Press.
24.
Reid, R., Morrow, T., Kelly, B., Adams, J., & McCartan, P. (2000). Human resource management practices in SMEs: A comparative analysis of family and nonfamily businesses. Journal of the Irish Academy of Management, 21(2), 157-181.
25.
Risseeuw, P., & Masurel, E. (1994). The role of planning in small firms: Empirical evidence from a service industry. Small Business Economics , 6(4), 313-332.
26.
Smyrnios, K., & Odgers, J. (2002). An exploration of owner and organizational characteristics, and relational marketing and opportunity search variables associated with fast-growth family versus nonfamily firms. In Proceedings of the Family Business Network 13th Annual World Conference, Helsinki, Finland (pp. 239-256). Lausanne, Switzerland: FBN.
27.
Storey, D.J. (1994). Understanding the small business sector. London: Routledge.
28.
Teal, E.J., Upton, N., & Seaman, S.L. (2003). A comparative analysis of strategic marketing practices of high-growth U.S. family and non-family firms. Journal of Developmental Entrepreneurship, 8(2), 177-195.
29.
Ward, J.L. (1987). Keeping the family business healthy. San Francisco, CA: Jossey-Bass.
30.
Ward, J.L. (1988). The special role of strategic planning for family businesses. Family Business Review, 1(1), 105-117.
31.
Westhead, P. (1997). Ambitions, external environment and strategic factor differences between family and non-family companies. Entrepreneurship and Regional Development, 9(2), 127-158.
32.
Westhead, P., & Cowling, M. (1997). Performance contrasts between family and non-family unquoted companies in the UK. International Journal of Entrepreneurial Behaviour and Research, 3(1), 30-52.
33.
Westhead, P., & Cowling, M. (1998). Family firm research: The need for a methodological rethink. Entrepreneurship: Theory and Practice, 23(1), 31-56.
34.
Williamson, O.E. (1981). The modern corporation: Origins, evolution, attributes . Journal of Economic Literature, 19, 1537-1568.
35.
Williamson, O.E. (1996). Transaction cost economics and the Carnegie connection . Journal of Economic Behavior and Organization, 31(2), 149-155.
