Recent research by University of Western Australia business lecturer Donella Caspersz has challenged some of the stereotypes and myths about family business, especially suggestions the smaller operations lack business strategy and human resource practices.
Dr Caspersz said the research confirmed a heightened awareness among Western Australian family business about the human resource practices that will help achieve positive business outcomes.
“Research was conducted using a survey, interviews and a focus group, and 106 completed surveys were returned,” she said.
About 65 per cent of participants were first-generation owners and 22 per cent were second generation.
Among the major research findings from the UWA study were:
- family businesses were very aware of human resource practices (particularly related to business outcomes and non-family employees) that could contribute to high performance in their firms and improve their competitive advantage; and
- family businesses demonstrated an understanding of the relationship between human resource practices and business strategy.
Challenges identified included the ability of family business to attract and retain essential employees, and leadership issues for the ongoing sustainability of the family business model in WA.
“Another key finding was that 76 per cent of participants described their business strategy as falling under the ‘prospectors’ category, meaning they are continually on the search for product and market opportunities,” Dr Caspersz told WA Business News.