Priorities, Resource Stocks, and Performance in Family and Nonfamily Firms

This article discusses how the performance of family firms and nonfamily firms might differ as a result of the different priorities flowing from family influence, even when the two types of firms possess comparable levels of resource stocks. Using hierarchical regression to analyze data from a national study of the Small Business Development Center program, we find that family influence has both a positive and a negative moderating effect on the relationships between different categories of resource stocks and performance. Specifically, family firms benefit more from resource stocks based on external relationships while nonfamily firms benefit more from resource stocks based on functional skills.