Family business and financial performance: Current state of knowledge and future research challenges

The present study investigates the link between family ownership/control/management and firm performance, focusing on financial relations. This study aims to reconstruct the existing theoretical framework and systematize the current state of knowledge, distinguishing between widely corroborated findings and those that have not been clearly substantiated. Towards this aim, the present work analyses 23 articles that were selected according to systematic review criteria in the most relevant databases for social sciences research. The lack of homogeneity in the results of previous studies suggests that the relationships between family business and corporate performance are complex and very probably moderated or mediated by factors that have not been included in these analyses. The main areas that need further investigation are as follows: (i) the multidimensional concept of performance and the shift from wealth creation to value creation, (ii) the validity and perspectives of theoretical approaches to the study of family firms, (iii) the family business definition dilemma and its implications, and (iv) the growing interest in privately held family firms. These topics represent strategic challenges and opportunities for future research.

► The link between family firms and performance is a crucial matter for the real economy. ► The family business definition dilemma has a strong effect on performance outcomes. ► Previous studies show discontinuous results as to listed and non-listed family firms. ► The multidimensional concept of performance includes economic and non-economic goals. ► Family business performance should consider both wealth and value creation.