| The purpose of this study was to test the validity of a newly developed instrument, the F-PEC scale developed by Astrachan, Klein, and Smyrnios (2002), to measure family influence in family business and to assess that influence on satisfaction with financial performance. From an initial sample of 1,143 responses to the 2002 American Family Business Survey, a sample data set of 452 responses to 26 items was established to test power, experience, and culture for their relationship to an eight item measure of satisfaction with financial performance.; Structural equation modeling was used to analyze the data after non-response bias tests and missing data bias tests were conducted. The power construct was dropped from the study due to missing data. The results of this study conclude that family experience and culture have a statistically significant, positive relationship with satisfaction with financial performance in family business.; A discussion concerning the debate on whether it is “good or bad” to have family members involved in the business is offered. The findings of this research suggest that it is not inherently bad to have family in the business, if performance is measured in terms of satisfaction. Founders and subsequent family CEO may take comfort in this as they make decisions that appear to favor family members.; Furthermore, this study provides support for the value of the F-PEC instrument for measuring experience and culture, while also identifying ways in which the scales might be improved. Future researchers can build on these finding to strengthen academician and practitioner understanding of the complexities of family business. Investigators are encouraged to pursue this promising line of research in family business. |
