Ambitions, external environment and strategic factor differences between family and non–family companies

Family firms are regarded as an important phenomenon throughout the world. It is, however, surprizing to note that empirical research surrounding the ambitions, ‘external’ environments and strategies of family firms is scarce. This exploratory paper addresses this research gap. To detect real rather than sample differences between independent family i and non--family unquoted companies in the UK, a matched sample methodology was utilized. In total, data was collected on 51 variables. Chi--square tests revealed 16 statistically significant contrasts between the two matched groups of companies. A discriminant analysis model, in addition, revealed the combination of variables that best dichotomized family from non--family companies. This model confirmed that family companies faced a number of unique issues that influ--enced their competitive stance. Interestingly, family companies that were resistant to change and unaware of emerging industry and market opportunities were markedly less likely to have focused upon technology concerns in order to improve their competitive position.