Family involvement and firm performance: a family embeddedness perspective

Cristina Cruz (), Rachida Justo and Julio Orlando de Castro ()
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Cristina Cruz: Instituto de Empresa
Julio Orlando de Castro: Instituto de Empresa

Working Papers Economia from Instituto de Empresa, Area of Economic Environment

Abstract: This paper uses family embeddedness (Cliff and Aldrich, 2003) and Work Family Interface (WFI) (Jennings and McDougald, 2007) to analyze the effect of gender and income on the relationship between family employment and firm performance in the context of micro and small family enterprises. Our results indicate that family employment contributed to increase sales but was negatively related to firm´s profitability. Moreover, the results indicate that when the business is the main source of household income the family employee´s positive impact on performance is reduced, and that the positive relationship between family employment and firm performance is stronger in woman run firms.

Keywords: Family firms; Gender (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-lab
Date: 2008-01
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