Family vs. Non-family Firm Behavior and Performance: A Study of Korean High-Technology Industries

Family vs. Non-family Firm Behavior and Performance: A Study of Korean High-Technology Industries

  Family businesses (FBs) are said to treat their employees with unusual consideration to form a cohesive internal “community”. They are also said to form more extensive “connections” or relationships with outside stakeholders. Both behaviors may increase the viability of a business intended to support an owning family and its later generations, and relate to the age-old notion of gemeinschaft. This study of Korean high technology businesses suggests that: 1) relationships of community and connection will be more common in FBs than in non-FBs, 2) these relationships will enhance performance, and 3) the performance of FBs will benefit more from these relationships than the performance of non-FBs.