Family firm competitiveness and owner involvement

Purpose In many countries, small and medium-sizes enterprises (SMEs) are primarily responsible for wealth, economic growth, innovation research development. this paper, the authors examine impact of family ownership owner involvement on financial performance unlisted Finnish SMEs. Design/methodology/approach This is an empirical paper using a random sample 1,137 non-listed Through regression analyses robustness tests, effects management, employee involvement. Findings Using profitability measures, find family-owned controlled SMEs perform significantly better than non-family firms. The number members actively involved in daily business operations bears significant negative relation to firm performance. contrast, firms which owners involved, provide comparable returns firms, suggesting that active contributes does not efficient way compensate employees since more dispersed lead higher Research limitations/implications SME Practical implications case Finland, effective organisational structure. As depth COVID pandemic remains uncertain, with committed key recovery. Originality/value approach issue from different angle. Unlike earlier studies, both privately owned helps shed light role as possible explanatory factor overall