Analysis and evaluation of the largest 500 family firms'websites through PLS-SEM technique

Abstract

As few studies relate the technical aspects of a corporate website to a firm's turnover, this paper aims to examine how the quality of a corporate website influences social networks and the company's turnover in large family firms. The moderating and mediating effect of social networks on the relationships between website quality and turnover are also tested. In addition, the paper performs a multigroup analysis to analyze the differences between family businesses with low and high family ownership concentration. The sample used in the study, the largest 500 family firms' websites around the globe extracted from The Global Family Business Index compiled by the University of St. Gallen, were analyzed using partial least squares-structural equation modeling (PLS-SEM). The results indicate that both the direct and indirect effect of website quality on turnover and the moderating effect of social networks in the relationship between website quality and turnover were negative and significant. The multigroup analysis reveals some significant differences between both groups. The study contributes to the evaluation of website literature by exploring a new sector of application: family businesses. Moreover, the largest family firms should improve their presence in social networks to increase their sales.