Orientation Toward Key Non-family Stakeholders and Economic Performance in Family Firms: The Role of Family Identification with the Firm

Based on the literature on stakeholder management and family firm dynamics, this research analyses the relationship between three constructs: the identification of business families with their family firms (FFs), FFs' orientation toward key non-family stakeholders (NFSs), and the achievement of better economic performance. Data analyses from 374 family and non-family members of 173 Spanish FFs show that a high level of family identification with their firms affects the orientation of FFs toward key non-family stakeholders in setting corporate goals and that this orientation will lead to higher economic performance only when it is built on family identification with the firm. Our results also show that the significance of both relationships changes with the degree of family involvement in the management of the FF.