The effect of ownership and management structure on family businesses performance

Abstract

The study examines the structure of ownership and management of family businesses and investigates whether it influences the performance of family businesses or not. The interplay between family, ownership, and management of business creates a setting for family businesses that promotes the performance of the family businesses. Statistical population is family businesses of the food industry in Tehran Province of Iran. One hundred and sixty-three CEOs of family businesses of the food industry were analyzed. Data were collected using a questionnaire survey from their CEOs. We observe that the ownership and management structure of family businesses influence the performance of family businesses in a positive way. We conclude in accordance with other theories that companies owned by the families are characterized by higher performance.

Keywords

• family business
• ownership and management structure
• performance