Family Involvement, Employee Engagement and Employee Performance in Enterprising Family Firms

Ravindra Hewa Kuruppuge and Ales Gregar
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Ravindra Hewa Kuruppuge: Department of Management and Marketing, Faculty of Management and Economics, Tomas Bata University in Zlin, Czech Republic
Ales Gregar: Department of Management and Marketing, Faculty of Management and Economics, Tomas Bata University in Zlin, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2017, vol. 65, issue 5, 1695-1707

Abstract: The study has been designed to analyze probable determinants of employee performance in family firms. A quantitative methodology was adopted. Data were collected from 113 employees from fifteen family businesses located in the Western Province in Sri Lanka. Correlation and ordinal logistic regression analysis were used to elaborate the relationships. Correlation analysis indicated that both family involvement and employee engagement correlate to employee performance. Family involvement in case of holding positions in functional and strategic levels by family members has shown no correlation to employee performance. Yet, having a family member as immediate boss/supervisor of an employee in the job has a strong correlation to employee performance. Regression analysis makes evident that almost all coefficients of the employee are negatively related to employee performance. Yet, all levels of employee engagement are significantly related to employee performance. It further shows that being the lower levels of employee engagement increases the likelihood of lower levels of employee performance.

Keywords: employee performance; employee engagement; family involvement; family firms; enterprising family firms; Sri Lanka (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2017065051695

DOI: 10.11118/actaun201765051695

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