Social Ghost in Machine: Family Cohesion, Participative Strategies, Potency, and Firm Performance

In this study, we use resource-based theory of the firm and the need to belong theory to examine the relationships between family cohesion, participative strategy processes, family business potency and family business performance. Our findings show that family cohesion is positively associated with family firm performance and that this relationship is mediated by family business potency. We did not find a significant relationship between participative strategy processes and family firm performance in the investigated family firms. Hierarchical regression analysis is utilized to examine these relationships in 109 family firms in the United States.