Keywords
Family Dynamics
Family Culture
Professionalization
Succession Planning
How to Cite
Abstract
This study investigates the impact of family dynamics on the performance of family-owned businesses in Madurai, with a focus on family culture, succession planning, professionalization, and community trust. A mixed-methods approach was used, combining both quantitative and qualitative data collection methods for a holistic analysis. A structured questionnaire was distributed to 466 family business owners and key family members, gathering data on demographic characteristics, family involvement levels, decision-making processes, and their perceived effects on business performance. Quantitative data were analyzed using SPSS and AMOS Graphics, while qualitative data underwent thematic analysis to identify underlying patterns and themes. The findings reveal that family culture, succession planning, professionalization, and community trust all positively influence the performance of family businesses. Specifically, family culture fosters a positive environment that supports business success, while professionalization helps enhance operational efficiency. Succession planning ensures business continuity, and community trust contributes to stronger external relationships. These results highlight the critical role of family dynamics in shaping business outcomes and emphasize the need for family-owned businesses to actively manage these factors to improve their overall performance. The study provides valuable insights into strategies that can support the growth and sustainability of family-owned businesses in Madurai.
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