Factors contributing to familiarity degree in family firms

Ascensión Barroso Martínez, Ramón Sanguino Galván, Claire Seaman and Tomás M. Bañegil Palacios

International Journal of Business Innovation and Research, 2019, vol. 18, issue 4, 503-527

Abstract: This research proposes a measuring instrument to determine the intensity of family engagement in meeting the defining and distinguishing criteria of family businesses. This proposed method enables the assessment of the different degrees of familiarity of a business on a continuous scale, where the extremes represent the companies with lower and higher degree of familiarity. The instrument, therefore, allows classify firms in function of its familiarity degree. The study was conducted in 180 Spanish family businesses. We have used a latent variable model (Rasch model) which has allowed us to define the familiarity degree construct from the existence or not of a set of items. This methodology also enables managers and institutions to identify the most uncertain perceived items. The article contributes to the existence of an objective characterisation when exploring the extent to which family members are involved in the family business, identifying its degree of familiarity.

Keywords: family business; family firm; familiarity degree; family engagement; familiness; measurement instrument; latent variable model; Rasch model; Spain. (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:18:y:2019:i:4:p:503-527

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