Business Planning Practices of Family‐Owned Firms within a Quality Framework*^*

* This study reports results from the Cooperative Regional Research Project, NE‐167R, “Family Businesses: Interaction in Work and Family Spheres,” partially supported by the Cooperative States Research, Education and Extension Service, U.S. Department of Agriculture, and the Experiment Stations at University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, Michigan State University, University of Minnesota, Montana State University, University of Nebraska, Cornell University (New York), North Dakota State University, The Ohio State University, The Pennsylvania State University, Texas A and M University, Utah State University, The University of Vermont, University of Wisconsin‐Madison, and the Social Sciences and Humanities Research Council of Canada (for The University of Manitoba). Supported, in part, through the Juran Scholar Award from the Juran Center for Leadership in Quality in the Carlson School of Management, University of Minnesota and the Family Owned Business Institute Research Scholar Award, Seidman School of Business, Grand Valley State University.

Abstract

Study purpose is to investigate the contribution of an integrated, interfunctional approach to quality management, inclusive of family/business interface management, to the success of 572 small family firms, using multiple measures of success (congruity and business revenues). A positive customer reputation was the most important business goal for 44.6 percent of firms. Interface and business management significantly explained business revenue and congruity between business and family while controlling for owner and business characteristics. Family/business interface management explained 9.7 percent of congruity variance and 8.2 percent of gross revenue variance, whereas business management explained 3.3 percent of congruity variance and 2.2 percent of gross revenue variance.

* This study reports results from the Cooperative Regional Research Project, NE‐167R, “Family Businesses: Interaction in Work and Family Spheres,” partially supported by the Cooperative States Research, Education and Extension Service, U.S. Department of Agriculture, and the Experiment Stations at University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, Michigan State University, University of Minnesota, Montana State University, University of Nebraska, Cornell University (New York), North Dakota State University, The Ohio State University, The Pennsylvania State University, Texas A and M University, Utah State University, The University of Vermont, University of Wisconsin‐Madison, and the Social Sciences and Humanities Research Council of Canada (for The University of Manitoba). Supported, in part, through the Juran Scholar Award from the Juran Center for Leadership in Quality in the Carlson School of Management, University of Minnesota and the Family Owned Business Institute Research Scholar Award, Seidman School of Business, Grand Valley State University.

* This study reports results from the Cooperative Regional Research Project, NE‐167R, “Family Businesses: Interaction in Work and Family Spheres,” partially supported by the Cooperative States Research, Education and Extension Service, U.S. Department of Agriculture, and the Experiment Stations at University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, Michigan State University, University of Minnesota, Montana State University, University of Nebraska, Cornell University (New York), North Dakota State University, The Ohio State University, The Pennsylvania State University, Texas A and M University, Utah State University, The University of Vermont, University of Wisconsin‐Madison, and the Social Sciences and Humanities Research Council of Canada (for The University of Manitoba). Supported, in part, through the Juran Scholar Award from the Juran Center for Leadership in Quality in the Carlson School of Management, University of Minnesota and the Family Owned Business Institute Research Scholar Award, Seidman School of Business, Grand Valley State University.

Notes

* This study reports results from the Cooperative Regional Research Project, NE‐167R, “Family Businesses: Interaction in Work and Family Spheres,” partially supported by the Cooperative States Research, Education and Extension Service, U.S. Department of Agriculture, and the Experiment Stations at University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, Michigan State University, University of Minnesota, Montana State University, University of Nebraska, Cornell University (New York), North Dakota State University, The Ohio State University, The Pennsylvania State University, Texas A and M University, Utah State University, The University of Vermont, University of Wisconsin‐Madison, and the Social Sciences and Humanities Research Council of Canada (for The University of Manitoba). Supported, in part, through the Juran Scholar Award from the Juran Center for Leadership in Quality in the Carlson School of Management, University of Minnesota and the Family Owned Business Institute Research Scholar Award, Seidman School of Business, Grand Valley State University.

Additional information

Notes on contributors

Sharon M. Danes

Sharon M. Danes is professor in the Department of Family Social Science at the University of Minnesota.

Johnben Teik‐cheok Loy

Johnben Teik-Cheok Loy is research assistant in the Department of Family Social Science at the University of Minnesota.

Kathryn Stafford

Kathryn Stafford is associate professor in the Department of Consumer Sciences at the Ohio State University.