The goals of the current research were to analyze the existence of differences in leadership between family and nonfamily firms adopting a transformational leadership approach, as well as the potential positive effects of transformational leadership on family businesses. With the transformational leadership theory as theoretical background, the research reveals that leadership is more transformational in family businesses than in nonfamily businesses. Similarly, this research uses a structural equations model to explain the relations between this kind of leadership in family businesses and specific performance-related variables, such as group cohesion, longevity, and profitability.
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