“Real” managerial differences between family and non‐family firms

To advance the scholarly understanding of family firm management by outlining the Australian experience with “real” differences between family and non‐family firms.

Utilising data from 2,190 Australian SMEs, industry based analysis focused on whether family businesses differ significantly from non‐family businesses within the framework of multivariate regression models that control for size and age of the firm.

The level of difference with non‐family firms is industry specific, varied, and generally lower than reported in the past. Manufacturing is the industry with most differences.

There are fewer differences between family and non‐family firms than we have been led to believe. Methodologies that control for context are essential. Studies are needed that explain why family firms differ more with non‐family firms in some industries than they do in others. Studies that uncover the “real” differences between large family and non‐family firms are also called for as the results shown here may be specific to SMEs. Agency theory may be more appropriate to large rather than small firms.

The level of context and size of dataset utilised in this study is rarely seen in family business research. Its value lays in bringing “real” Australian differences to the attention of scholars, supporting the need for better methodologies, demonstrating the importance of industry and size as determinants of context and outlining the heterogeneous nature of family firms.