Organisational-based factors influencing the non-financial goals of family businesses

Abstract

Several commentators have pointed out that there is a need for research on the attainment of non-financial goals in family businesses and the factors that influence the achievement of these goals. By investigating the influence of several organisational-based factors on the non-financial goals, namely perceived future continuity and family harmony, this study attempts to address this gap in the family business literature. More specifically, the primary objective of this study was to investigate the influence of role clarity, needs alignment, governance, leadership, non-family members and financial performance on the achievement of these non-financial goals. To address the primary objective, a survey was undertaken using a structured questionnaire. The respondents were identified by means of a convenience snowball sampling technique, and the survey yielded 931 usable questionnaires from 173 family businesses. To assess the reliability and validity of the measuring instrument, the data collected were analysed by means of an exploratory factor analysis and Cronbach-alpha coefficients were calculated. The hypothesised relationships were assessed by means of a multiple regression analysis. The results show that role clarity, needs alignment and leadership, as well as financial performance exert a positive influence on both non-financial outcomes, namely family harmony and perceived future continuity. Conflicting results are reported concerning governance, whereas non-family members have no influence on the non-financial goals investigated in this study.