Breaking down the Family System: an analysis of the family stakeholders’ non-financial performance objectives

It is widely accepted by family firm researchers that family firms make considerable efforts to achieve both financial and non-financial objectives. Through the lens of stakeholder theory (Freeman, 1984; Laplume et al. 2008) we examine which non-economic performance objectives are most important to individuals within the family system of a private family firm. Case studies of two later-generation family firms are reported to highlight the differing financial and non-financial objectives of stakeholders. Qualitative data, collected through semi-structured interviews with the various family stakeholders of the two family firms was analysed using NVivo software, which helped explore which non-financial performance objectives were most important to which group. The contribution of this paper to the field of family business is the examination in detail, of the family system, and the importance to which this system pursues non-financial objectives.