The effects of goals attainment on CEO-owner satisfaction and the role of family involvement
Journal of Family Business Management
ISSN: 2043-6238
Article publication date: 7 November 2019
Issue publication date: 17 April 2020
Abstract
Purpose
The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship.
Design/methodology/approach
Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business.
Findings
The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement.
Originality/value
The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.
Keywords
Acknowledgements
The author appreciates the funding support received from the Czech Science Foundation for this project entitled “Privately-held Firms with Multiple Owners: The Role of Family and Responsible Ownership” (Registration No. GA17-10948S).
Citation
Machek, O. and Hnilica, J. (2020), "The effects of goals attainment on CEO-owner satisfaction and the role of family involvement", Journal of Family Business Management, Vol. 10 No. 2, pp. 116-127. https://doi.org/10.1108/JFBM-05-2019-0034
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited