Goal Orientation and Performance of Family Businesses
- 601 Downloads
Family businesses consist of family members pooling their resources together to achieve a particular goal for the family business. The objectives of this study were to profile the characteristics of the family businesses and business owners by owners’ goal orientation and to examine the influence of goal orientation on family business performance. The mean differences in values of business size, business age, and business liabilities were statistically significant by owners’ goal orientation. The major findings of this study suggest that owner goal orientation had a statistically significant effect on business performance. Specifically, setting a business goal such as growth or a positive reputation with customers had a significant and positive impact on family business performance.
KeywordsBusiness success Family business Goal setting Performance
This paper reports results from the Cooperative Regional Research Project, NC-1030 “Family Firms and Policy in Times of Disruption”, partially supported by the Cooperative States Research, Education, and Extension Service (CSREES); U.S. Department of Agriculture; Baruch College, the experiment stations at the University of Hawaii at Manoa, Purdue University (Indiana), Iowa State University, University of Minnesota, Cornell University (New York), Montana State University, North Dakota State University, The Ohio State University, Oklahoma State University, Utah State University, and University of Wisconsin-Madison.
- Anderson, J. C., Rungtusanatham, M., & Schroeder, R. G. (1994). A theory of quality management underlying the Deming Management Method. Academy of Management Review, 19(3), 472–509. Retrieved June 10, 2010, from http://www.jstor.org/stable/258936.
- Brush, C. G. (1992). Research on women business owners: Past trends, a new perspective, and future directions. Entrepreneurship Theory and Practice, 16(2), 5–30.Google Scholar
- Caputo, R. K., & Dolinksky, A. (1998). Women’s choice to pursue self-employment: The role of financial and human capital of household members. Journal of Small Business Management, 36(3), 8–17.Google Scholar
- Carland, J. W., Hoy, F., Boulton, W. R., & Carland, J. C. (1984). Differentiating entrepreneurs from small business owners: A conceptualization. Academy of Management Review, 9(2), 354–359. Retrieved October 19, 2009, from http://www.jstor.org/stable/258448.
- Chrisman, J. J., & Carroll, A. B. (1984). Corporate responsibility-reconciling economic and social goals. Sloan Management Review, 25(2), 59–65.Google Scholar
- Cooper, A. C., & Gimeno-Gascon, F. J. (1992). Entrepreneurs, processes of founding, and new firm performance. In D. Sexton & J. Kasda (Eds.), State of the art of entrepreneurship research. Boston: PWS-Kent Publishing Co.Google Scholar
- Frese, M., Krauss, S. I., & Friedrick, C. (2000). Microenterprises in Zimbabwe: The function of sociodemographics personal initiative, and goal setting for entrepreneurial success. In M. Frese (Ed.), Success and failure of microbusiness owners in Africa: A psychological approach. Westport, CT: Quorum Books.Google Scholar
- Gimeno-Gascon, J., Folta, T. B., Cooper, A. C., & Woo, C. Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42(4), 750–783. Retrieved June 6, 2010, from http://www.jstor.org/stable/2393656.
- Hofer, C. W., & Schendel, D. (1978). Strategy formulation. Minneapolis, MN: West Publishing.Google Scholar
- Holmquist, C., & Sundin, E. (1989). The growth of women’s entrepreneurship: Push or pull factors? Paper Presented to EIASM Conference on Small Business. University of Durham Business School.Google Scholar
- Ibrahim, N. A., Angelidis, J. P., & Parsa, F. (2004). The status of planning in small businesses. American Business Review, 22(2), 52–60.Google Scholar
- Kuratko, D. F., Hornsby, J. S., & Naffziger, D. W. (1997). An examination of owner’s goals in sustaining entrepreneurship. Journal of Small Business Management, 35(1), 24–33.Google Scholar
- Locke, E. A., & Latham, G. P. (1999). A theory of goal setting and task performance. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
- Lyles, M. A., Baird, I. S., Orris, J. B., & Kuratko, D. F. (1993). Formalized planning in small business: Increasing strategic choices. Journal of Small Business Management, 31(2), 38–50.Google Scholar
- Matthews, C. H., & Scott, S. G. (1995). Uncertainty and planning in small and entrepreneurial firms: An empirical assessment. Journal of Small Business Management, 33(4), 34–52.Google Scholar
- Miller, C. C., & Cardinal, L. B. (1994). Strategic planning and firm performance: A synthesis of more than two decades of research. Academy of Management Journal, 37(6), 1649–1665. Retrieved June 6, 2010, from http://www.jstor.org/stable/256804.
- Newman, W. H., & Logan, J. P. (1971). Strategy, policy, and central management. Cincinnati, OH: South Western.Google Scholar
- Peake, W. O., & Marshall, M. I. (2011). Experience and entrepreneurship in industrialized countries: A meta-analysis. Southern Journal of Entrepreneurship, 4(1), 49–70.Google Scholar
- Rue, L. W., & Ibrahim, N. A. (1998). The relationship between planning sophistication and performance in small businesses. Journal of Small Business Management, 36(4), 24–32.Google Scholar
- Scarborough, N. M., & Zimmerer, T. W. (1987). Strategic planning for the family owned business. Business, 37, 11–19.Google Scholar
- Schwenk, C. R., & Shrader, C. B. (1993). Effects of formal strategic planning on financial performance in small firms: A meta-analysis. Entrepreneurship Theory and Practice, 17(3), 53–64.Google Scholar
- Seijts, G. H., Latham, G. P., Tasa, K., & Latham, B. W. (2004). Goal setting and goal orientation: An integration of two different yet related literatures. Academy of Management Journal, 47(2), 227–239. Retrieved October 19, 2009, from http://www.jstor.org/stable/20159574.
- Valencia, M., Lamolla, L., & Amorós, J. E. (2007). Women entrepreneurs’ business goals and performance: In harmony? (summary). Frontiers in Entrepreneurship Research, 27(8), Article 4. Retrieved October 19, 2009, from http://www.digitalknowledge.babson.edu/fer/vol27/iss8/4.
- Vinzant, J. C., & Vinzant, D. H. (1996). Strategic management and total quality management: Challenges and choices. Public Administration Quarterly, 20(2), 201–219.Google Scholar