Performance of Family Business in Malaysia

Abstract

Performance of family firms is an interestingly growing topic of study. In Malaysia, many studies were conducted in an attempt to understand performance of family firms, however these studies have been biased towards operationalizing performance through financial indicators particularly Tobin's Q. Researchers also tended to test the effect of various factors relating to corporate governance and board of directors on performance. Ethnic wise, performance of family firms may be significantly impacted by culture. Success of Chinese firms seems to be attributed to the role of family participation and ethnic networks governing the entrepreneurial practice.