Empirically, the confluence of family involvement, ethics, and performance is a sparse research area. The authors explore a rich theoretical framework relating family involvement, ethical focus, and firm performance and empirically test a mediated model using a sample of 526 family businesses. The results illustrated that a firm’s ethical focus mediated the relation between family involvement and financial performance. Specifically, data supported the relation between family involvement and a firm’s ethical focus. And increased ethical focus predicted increased financial performance. The authors discuss the implications of these findings and offer potential areas for future research in family business studies.
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