Purpose We develop this study with a twofold objective. First, we investigate how the behaviour of family enterprises of different sizes varies according to the economic phase in which they are immersed, which helps us to determine whether family firms would really have the need to reach a larger business size. Second, we analyse how the defining factors of the identity of such companies influence their size; specifically, how the concentration of ownership in the hands of the family and the business name affects the operating income, the number of employees and the investment of family firms. Design/methodology/approach Using panel data, information from 21,149 Spanish family firms for 11 consecutive fiscal years, which include different economic situations was collected. Findings Family identity is an important factor, as it significantly affects the size of family businesses and consequently their ability to successfully cope with economic recessions. Originality/value The influence of family identity on company size is of interest, since this may hinder the success and survival of companies if family needs are prioritised over economic objectives.
Ibáñez et al. (Mon,) studied this question.