Family Firms Specifics: Business Impact on Family Climate

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Abstract

Purpose of the article: Family business research aims to achieve better understanding of not only the differences between family and non-family firms, but also the interconnectedness of various characteristics of family firms. The main distinguishing feature of a family firm is the family firm's influence on family relationships (family climate). A healthy family climate is the key to a well performing family business. Assuming good family relationships, international research has indicated that family business leads to family cohesion and growth, as well as to better cohesion in the community and better work and family satisfaction. This paper presents partial results of research on the impact of entrepreneurship on family relationships in Czech family firms.

Methodology/methods: The data for the research was collected by means of a questionnaire survey. Survey respondents were family business owners. Analysis of contingency tables was used to evaluate the data on family relationships. The qualitative methods used for data analysis were chi-square test, Phi coefficient and Cramer's V, Person's adjusted residuals (or sign scheme). Fisher's exact test was used in case of low frequencies.

Scientific aim: The aim of the paper was to find out how family business affects relationships in families (family climate).

Findings: The results provide a new insight into the current situation of family entrepreneurship in Czechia. From the respondents' answers it follows that stated positive influence of family business on family cohesion leads to a multitude of important positive consequences. It seems to be associated with higher social reputation, as well as a higher reputation in the business community and leads to a greater unity in the family business neighbourhood. In addition, in this case, family business also provides a better work-family balance and leads to an upskilling of family members.

Conclusions: These findings help to understand family businesses better and the conclusions will be used in further research aimed at determining the value of family businesses.

 Keywords: family business, family climate, frequency analysis, chi-square test, Czech Republic

JEL Classification:  L26, M14, M21

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Published

2022-04-21

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Section

Economy in Digital Transformation