The pursuit of financial profit has always been, and will continue to
be, the core concern for private sector organisations. There has been an
unquestioning acceptance that the maximisation of financial return is
the primary driver for all private sector firms regardless of the nature
of these firms. This book challenges the simplicity of that assumption.
Using empirical research undertaken in a variety of private sector
organisations in Germany this book demonstrates that there are
differences which reflect the nature of the firm in question. The
research compares family and non-family firms and finds significant
variations in organisational objectives. The priorities, structure and
financial drivers of family firms differ markedly from those of non
family firms and, unsurprisingly, strongly reflect the family influence.
Yet, the dominant paradigm in current management thinking is centred on
public limited companies (PLC) managed by professionals and overseen by
a Board of Directors representing the interests of a large number of
shareholders. Even here the evidence is that the achievement of maximum
return on invested capital is not necessarily the first and only
priority. In western economies family firms have significant
macroeconomic importance. Taking a differentiated view on private sector
organisations matters to practitioners and politicians who must ensure
their decisions are being made on the right premises. Researchers may
feel invited to interdisciplinary research initiatives that integrate
findings from family business research and other academic fields.
