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Differences Between Family and Non-Family SMEs: A comparative study of Australia and Belgium
Max Smith
Flinders Business School, Flinders University of South Australia, Adelaide SA
Abstract
This study attempts to further the development of family business theory by providing a more detailed understanding of the differences between family and non-family firms’ profitability, growth, exporting and networking behaviour. Utilising data from 2190 Australian SMEs, the study compares the Australian experience of differences between family and non-family firms with those found among Belgium firms.
The Australian results are consistent with the growth and some of the networking behaviour found among Belgium firms, but not with their profitability and exporting behaviour. The study’s findings support the contentions that the differences between family and non-family firms may be less than many earlier studies have indicated and that industry differences and cross-national differences in corporate governance environments may lead to variances in these differences.
It also demonstrates that the underlying theoretical rationale for a number of predicted differences between family and non-family firms appears flawed. These findings indicate that new empirical studies that control for context are urgently needed to ensure the scholarly literature on family businesses is not being built on false assumptions. They also indicate that studies designed to explain differences in the family/non-family business relationship between industries and nations may lead to advances in family business theory.
Keywords
family business, industry differences, country differences, Australia, Belgium, agency theory
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