Balancing Business Dimensional and Family Dimensions in Family Business: Ownership Approach

Abstract

To balance between business dimension and family dimension with ownership approach should consider three factors: (1) family control, (2) shareholders liquidity, and (3) growth capital. Family control has an influence on the ability to control the company. Shareholders liquidity has influence on the voting rights of shareholders. Last is the growth capital that has an influence on operationalize the company efficiently. Using Sharma's performance matrix, the best type of family business is a professional family business (FB) rather than a family business with family oriented (FB) or a family business with Business oriented (FB). Although the FB has difficulty balancing the business dimension and family dimension.