The effect of family business size as firms grow: a USA‐France comparison

Abstract

Purpose

The purpose of this paper is to investigate how family businesses change as they grow in size, and to compare differences between the USA and France.

Design/methodology/approach

The research design is survey research, statistically t‐testing 12 hypothesized differences between smaller and larger firms in the USA (n=159) and in France (n=116).

Findings

The research finds that both countries' larger firms have significantly (p < 0.05) more non‐family members within top management and make greater use of outside consultants, advisors, and professional services than smaller firms. However, family businesses in France had no other significant differences, while those in the USA had four. Larger US firms have a smaller percentage of women family members working in the firm and less conflict and disagreement between family members; they also spend more time in strategic management activities, and use more sophisticated methods of financing.

Research limitations/implications

There are some variations between the two country samples.

Practical implications

Understanding whether and how family business management activities, styles and characteristics change with growth can help those who own and manage such businesses. It can also be of value to those who advise and assist family businesses, as well as researchers who study them.

Originality/value

This is the first study to analyze the effect of firm size on family business management and to conduct a cross‐national comparison.

Citation

Lussier, R.N. and Sonfield, M.C. (2006), "The effect of family business size as firms grow: a USA‐France comparison", Journal of Small Business and Enterprise Development, Vol. 13 No. 3, pp. 314-325. https://doi.org/10.1108/14626000610680226