Is Family Ownership Good for Firm Performance?

This study examines the impact of family ownership on the performance of family small and medium-size enterprises (SMEs), the mediating impact of R&D Investment, and the moderating impact of performance hazard. Additionally, by integrating the mediating and moderating impacts, we propose a moderated mediation model for the performance of family SMEs. Using 148 samples of domestic SMEs from 2000 to 2016 show that the relationship between family ownership and performance is negatively correlated, and R&D investments also negatively affects performance. Furthermore, performance hazard acts as a positive moderator in the family ownership and R&D investment. The finding’s implications for research and managerial practice are discussed.