The Impact of Family Ownership on SME Resilience: A Three-Circle Model Analysis
-
Ante Vuletić
Abstract
Family-owned enterprises represent a vital component of the global economy, distinguished by unique governance structures and resilience mechanisms. This study explores the influence of family ownership on business resilience in small and medium-sized enterprises (SMEs), using the Three-Circle Model as a conceptual framework. Based on data from 80 family-owned enterprises, the analysis investigates the relationships among family participation, succession planning, and the integration of professional management in relation to organizational resilience. The findings indicate that family ownership (r = 0.67, p < 0.01) and succession planning (r = 0.54, p < 0.05) significantly enhance resilience, while professional management shows a moderate positive effect (β = 0.20, p = 0.10). These results offer practical implications for family enterprises aiming to balance familial governance with professional expertise.
Abstract
Family-owned enterprises represent a vital component of the global economy, distinguished by unique governance structures and resilience mechanisms. This study explores the influence of family ownership on business resilience in small and medium-sized enterprises (SMEs), using the Three-Circle Model as a conceptual framework. Based on data from 80 family-owned enterprises, the analysis investigates the relationships among family participation, succession planning, and the integration of professional management in relation to organizational resilience. The findings indicate that family ownership (r = 0.67, p < 0.01) and succession planning (r = 0.54, p < 0.05) significantly enhance resilience, while professional management shows a moderate positive effect (β = 0.20, p = 0.10). These results offer practical implications for family enterprises aiming to balance familial governance with professional expertise.
Chapters in this book
- Frontmatter I
- Contents V
- Preface VII
- Strategy Development in the Light of Radical Change: A Perspective on the Evolution and Revolution of Family Businesses 1
- The Importance of VUCA and BANI in Developing Sustainable and Long-term Oriented Strategies in Family Businesses 27
- Employee Resilient Behavior and Its Leadership Prerequisites: Strategies for Founder Generation Family Firms 53
- The Impact of Family Ownership on SME Resilience: A Three-Circle Model Analysis 73
- Implications of Company Succession on Resilience of Small and Medium Size Companies 85
- Passing the Torch: Perceived Risks and Opportunities in Family Business Succession 103
- Convenience Study of Criminal Deviance in the Entrepreneurial Family Business: Husband as Lawyer and Wife as Accountant in the Law Firm 119
- The Adaptive Capacity of Tourism Family Firms – An Owners’ Perspective on Risk Resilience 147
- Corporate Social Responsibility during the COVID-19 Pandemic: Learnings from Austrian Family Businesses 169
- Resilience beyond Metrics: How Hidden Resources in Small Family Firms Challenge the Resource-Based View 183
- The Impact of AI-Induced Downsizing on Family Businesses 201
- List of Contributors
- Index
Chapters in this book
- Frontmatter I
- Contents V
- Preface VII
- Strategy Development in the Light of Radical Change: A Perspective on the Evolution and Revolution of Family Businesses 1
- The Importance of VUCA and BANI in Developing Sustainable and Long-term Oriented Strategies in Family Businesses 27
- Employee Resilient Behavior and Its Leadership Prerequisites: Strategies for Founder Generation Family Firms 53
- The Impact of Family Ownership on SME Resilience: A Three-Circle Model Analysis 73
- Implications of Company Succession on Resilience of Small and Medium Size Companies 85
- Passing the Torch: Perceived Risks and Opportunities in Family Business Succession 103
- Convenience Study of Criminal Deviance in the Entrepreneurial Family Business: Husband as Lawyer and Wife as Accountant in the Law Firm 119
- The Adaptive Capacity of Tourism Family Firms – An Owners’ Perspective on Risk Resilience 147
- Corporate Social Responsibility during the COVID-19 Pandemic: Learnings from Austrian Family Businesses 169
- Resilience beyond Metrics: How Hidden Resources in Small Family Firms Challenge the Resource-Based View 183
- The Impact of AI-Induced Downsizing on Family Businesses 201
- List of Contributors
- Index
