The impact of educational attainment of the Family Members Managing the business on the performance of selected SME Family Business in NCR

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Business Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Thesis Adviser

Harvey Ong

Abstract/Summary

The Small and Medium Enterprise (SME) sector is considered the backbone of the Philippine economy. Comprising 99.6 percent of all registered businesses nationwide, the sector contributes 32 percent to the economy and employs 69.9 percent of the labor force (Philippine SME Development Strategy, 1998). In the given data, family businesses constitute a substantial portion of the sector. A significant number of researchers have already conducted studies regarding the operations of large family businesses. However, only a few regarding the SME sector have been conducted. It was proven in a previous study conducted by Sciascia and Mazolla (2008) in Italy that greater family involvement in management resulted in a lower performance level. However, both suggested that adding a moderating variable could make the study more reliable. To address the authors’ recommendation, this study toggles the relevant issues in both SME and family businesses. It aims to assess the relationship between Family Involvement in Management (FIM) and the overall performance of the firm, particularly on SME family owned firms, with educational attainment serving as the moderating variable. Hence, the research design is both correlation and exploratory. Furthermore, the proponents used the snowball sampling method to identify the study’s respondents--100 SME family businesses located in the National Capital Region (NCR). To analyze the data gathered from the survey’s 86 respondents, the proponents used Pearson’s Correlation. Ultimately, the results showed that FIM has an inverse relationship with performance; therefore, the higher the FIM, the lower the performance. Educational attainment, on the other hand, was found to have a direct relationship with performance; therefore, it can moderate the relationship between FIM and performance. Having more family members who are college graduates and are involved in the business will yield better business performance.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16728; CDTU016728

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

1 computer disc ; 4 3/4 in.

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