Family Dynamic and Family Business Financial Performance: Spousal Commitment

Abstract

This article views the survival of a family business as partially dependent on spousal commitment. The decision to launch a business should depend not only on analysis of the opportunity, but also on the degree to which one's spouse shares a common vision about the goals, risks, and rewards of the business. Models and testable hypotheses are developed to guide empirical research on the antecedents and consequences of spousal commitment to a family business. The models can benefit individuals considering the launch of a business, couples that currently own a business, business consultants, and university instructors teaching entrepreneurship courses.

Women and power: a theoretical approach using the example of copreneurial businesses

“…The more a spouse is included in the decision-making process, the more they are inclined to invest in the company (Van Auken and Werbel, 2006). Formal and informal cooperation in decision-making between the two partners contributes to shared satisfaction.…”

“…The commitment and support of the entrepreneur's spouse plays a decisive role in the company's performance by influencing attitudes, motivation, and the resources that are available to the entrepreneur (Poza and Messer, 2001). The spouse has the power to significantly impact both family and business dynamics (Van Auken and Werbel, 2006). The more the man seeks to invest in his professional life, the more he needs the support of his wife.…”

Exploring the concept of familiness: Introducing family firm identity

“…For example, as a consequence of family involvement, family members may provide financial support through outside sources of income, emotional support through encouragement, and instrumental support through knowledge and human capital to the family firm (Danes et al, 2009;Van Auken & Werbel, 2006). In this way, the essence approach is able to describe different types of family firms and behaviors, thereby capturing the heterogeneity of family firms (Westhead & Howorth, 2007).…”

The Impact of Internal Factors on Small Business Success: A Case of Small Enterprises Under the Felda Scheme

“…It can also be characterised as a firm's ability to create acceptable outcomes and actions (Van Praag, 2003;Marom & Lussier, 2014). There is no universal acceptable definition of business success and a majority of management studies measure business success from the perspective of firms' performance (Van Auken & Werbel, 2006;Reijonen & Komppula, 2007;Wang & Wang, 2012). In fact, firm performance is also complex and has multidimensional facets.…”