An assessment of selected family business values in small and medium-sized family businesses

Abstract

This study highlights the influence of selected business family values on the success of small and medium-sized family businesses. Success, for the purpose of this study, is measured using two variables, namely Harmonious family relationships and Perceived future continuity. The primary objective of this study is twofold: firstly, to identify the potential influence of selected business family values on the success of family businesses and secondly, to make practical recommendations on actions that families in business can take to ensure harmonious family relationships and the future continuity of their family businesses. The target population of this study was small and medium-sized family businesses in South Africa, and a total of 931 individual questionnaires were returned from 173 family businesses. The data collected was subjected to various statistical analyses, including exploratory factor analysis, calculating Cronbach alpha coefficients, and multiple linear regression analysis. The findings of this study show that the more family members perceive fair treatment in the family business, the more harmonious family relationships and perceptions of business continuity will be. In addition, the perceived level of trust, commitment and effective communication has a positive influence on family harmony and business continuity. This study has added to the empirical body of family business research, and provides an important first step in gaining insights into selected family business values that influence the effective functioning of family businesses