Owner-manager objectives as significant driving factor of family business performance

Abstract

The purpose of this study was to determine performance as conceived by the owner-manager (POM) of the owner-manager profile (OMP) and owner-manager objectives (OMO). In analysing the results, the researcher used the method of partial least square regression software applied to data from 56 Indonesian business families. The results obtained are First, OMO has a significant effect on POM. Second, OMP has no significant effect on POM. Indicators of owner-manager education are influential as formative indicators of OMP. The indicator of knowledge sharing knowledge and knowledge of the growth of the owner-managers company has an effect as a formative indicator of OMO. Indicator of the ability to use company resources and the ability to read owner-manager financial statements have an effect as a formative indicator of POM.