How is risk different in family and non-family businesses? A comparative statistical analysis during the COVID-19 pandemic
Journal of Family Business Management
ISSN: 2043-6238
Article publication date: 26 November 2021
Issue publication date: 1 December 2022
Abstract
Purpose
Risk is part of corporate activity and a consequence of the businesses' demands, the market and the changes in companies and their surroundings. The way that risk is managed is different between family and non-family businesses. The paper aims to compare the different risk types experienced in the context of the coronavirus disease (COVID-19) pandemic among family and non-family businesses and to analyze whether operational, legal, strategic and image risks influence financial risks.
Design/methodology/approach
The nature of the study is quantitative and based on a questionnaire survey that analyses the perception of risks by 1,090 family businesses and 557 non-family businesses.
Findings
The results show the existence of statistically significant differences in the perception of financial and legal risks between family and non-family businesses, where the former being the businesses that give more importance to these risks. The perception of operational, legal, strategic and image risks have a positive influence on the perception of financial risk in family and non-family businesses.
Originality/value
The results obtained in the study are important because they allow an understanding about the differences in risk management between family and non-family businesses, which can lead to greater corporate sustainability and increased financial performance.
Keywords
Citation
Santos, E., Tavares, V., Tavares, F.O. and Ratten, V. (2022), "How is risk different in family and non-family businesses? A comparative statistical analysis during the COVID-19 pandemic", Journal of Family Business Management, Vol. 12 No. 4, pp. 1113-1130. https://doi.org/10.1108/JFBM-10-2021-0123
Publisher
:Emerald Publishing Limited
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