Influence of Social and Economic Factors on the Business Performance of Family-Owned Firms: A Multilevel Review

Abstract

It is evident from the facts that family-owned businesses (FOBs) are extensive in the global economy as they play massive roles in economic development. However, their operations are given to a set of social economic factors that determine the performance and viability of the companies. The design used in this study is a systematic review and meta-analysis based on the PRISMA model. The following is a multilevel review of empirical papers to identify how family dynamics, succession, capital, and economic environment affect the family business's performance. A deep examination of these factors is important to enable family firms to be sustainable and competitive (Viilo, 2021). This study also sheds light on how intergenerational relationships influence strategic decision-making in family firms. Cultural values and governance structures are considered as mediating variables in the observed outcomes. Special attention is given to gender roles and generational shifts in leadership transitions. Overall, the findings underscore the complexity and uniqueness of family enterprises within different socio-economic contexts. Analysing these factors at the individual, group, and organizational levels, this paper summarizes the issues relating to the management of family businesses. The results are presented in five major themes, and the discussion provides specific recommendations stemming from the analysis and directions for further investigation.