Are Family Firms More Harmonious Organisations?: An Analysis of the Effects of Organisational Harmony on Their Performance

DOI: 10.5176/2251-1970_BizStrategy13.09

Authors: Manuel C. Vallejo-Martos, José M. Antequera-Solís, M. Carmen Ruiz-Jiménez

Abstract:  The levels of organisational harmony between family and non-family firms are compared. We use the main topics indicated by the general literature (organisational climate, trust, and participation) to analyse organisational harmony. At the same time, we propose a model to study the influence of organisational harmony on performance (profitability, survival, and group cohesion).

Results indicate that family firms have higher levels of these three qualities than non-family firms; and that the levels of trust, participation, and organisational climate have a positive and significant influence on the performance of family firms.