![]() ![]() The most difficult of the criteria, met by only 26% of the firms, is that current management plans to transfer the enterprise to the next generation. ![]() The least difficult criterion, that one or more of the management team is drawn from the family that owns the business, is met by 77.6% of the responding firms. The study uses a series of statistical procedures, including factor analysis and cross-tabulations, to identify a potential ordering of criteria varying in difficulty. In particular, the index assigns a value of family-relatedness to a company depending upon the criteria that it meets. ![]() More specifically, the research question is as follows: Can various indicators of family business be validly combined using a Guttman scale? After reviewing the different definitions dealt with in the family business research literature, the paper presents the results of an analysis of various items available for this particular dataset. This paper demonstrates the use of the Guttman-scaling procedure, on a random sample of 885 Dutch SMEs. It is consistent with multidimensional definitions of family business such as the F-PEC scale. The purpose of this paper is to introduce a new approach for operationalising family-business variables.
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