The Relationship between Family Function and Economic Function in Family Businesses: A Case Study on the Machine Made Carpet Industry in the Cities of Kashan and Aran-o-Bidgol

Khabazi, MR; Farahbakhsh, Kiiumars; Agheli, Lotfali

The Relationship between Family Function and Economic Function in Family Businesses: A Case Study on the Machine Made Carpet Industry in the Cities of Kashan and Aran-o-Bidgol

Document Type : Research Paper

Authors

MR Khabazi

Kiiumars Farahbakhsh

lotfali agheli

Abstract

Family businesses which have both high economic functions and high internal family coordination at the same time are among the most successful of this kind of business. This piece of research is aimed at exploring the relationship between family function and economic function in family businesses with a case study dealing with the machine made carpet industry in the cities of Kashan and Aran-o-Bidgol. The statistical population is composed of the managers of machine made carpet companies in Kashan and Aran-o-Bidgol from among whom 122 subjects were selected using the stratified random sampling method. The research method is of survey-correlation nature. Family function device (FFD) and economic function questionnaire (EFQ) were applied in data collection. The data were analyzed by means of Pearson correlation test, with the results suggesting a significant correlation between family function and economic function. Therefore, it is necessary for family businesses to promote and develop their family function and economic functions so as to grow more, maintain the ability for competition in carpet industry, preserve their invaluable heritages and transfer them to the next family generations, attempting to coordinate, interact and synergize family and business systems.

Keywords

family function

Economic Function

Family Business

Family System

Business System