Effects of Family Influence on Satisfaction with Financial Results: Family business examined using the Family-Power, Experience, Culture (F-PEC) Scale ... 2002 American Family Business Survey data set

By all accounts, family owned businesses comprise a major proportion of all businesses worldwide. Family businesses range in size from sole proprietorships to the largest and most successful businesses in the world, including retailing giant Wal-Mart. This research explores the influence that family members have on many aspects of the business organization, from the labor force to the Board of Directors. This study empirically tests the validity of the F- PEC scale developed by Astrachan, Klein and Smyrnios (2002) and, using structural equation modeling, concludes family experience and culture have a statistically significant, positive relationship with satisfaction with financial performance in family business. The results have far reaching implications due to the magnitude of family business organizations within the worldwide economy and society. Building on marriage and family counseling literature, this reseach takes the reader into the heated debate on whether it is "good or bad" to have family members involved in the business.