Performance Analysis in Family Businesses with Structural Equation Modelling

In this study, performance analysis in family businesses is conducted by using structural equation modelling. The effect of family influence, marketing orientation, and managerial decisions including strategic process, board of directors, human resources and succession on the business and family performances, is analyzed by using structural equation modelling (SEM). In this context, by analyzing the results of the survey with 244 family businesses, it is concluded by the main hypotheses that family influence, marketing orientation, and managerial decisions have positive effect on both business and family performances. According to the results of the study, family influence has the biggest effect on business performance. The sub dimensions of managerial decisions (strategic process and succession) have important effect on business performance. Family influence has the biggest effect on family performance, as well. After family influence, managerial decisions and marketing orientation effect family performance, respectively. Among the sub dimensions of managerial decisions, succession, human resources, strategic process, and board of directors have the biggest effect on family performance, respectively. In addition, in this study the effect of family influence on marketing orientation and on managerial decisions, and the relationship between the managerial decisions and marketing orientation are analyzed by using the sub hypotheses