First-Generation, Second-Generation and Third-Generation Family Business : A Manova Comparison

This research builds on an earlier study by Sonfield and Lussier (2002), in order to expand our comprehension of similarities and differences between first-generation family firms (1GFFs), second-generation family firms (2GFFs), and third-generation family firms (3GFFs).A lengthy literature review is presented, as are 12 testable hypotheses.The sample consists of 159 surveyed family firms in New York and Massachusetts, a much larger sample than was used in Sonfield and Lussier (2002).Rather than using one-way ANOVA as in the previous study, the much stronger MANOVA test is used. The results of the analysis supportonly 3 of the 12 hypotheses.A statistically significant difference is found among generations in the creation of specific succession plans, with 1GFFs planning less than the other generations.Also, no difference exists among generations regarding the influence of the firm's founder.The final hypothesis, that hypotheses 1 through 11 together create a model that reveals significant differences between generations, is accepted, and a limitation of this finding is discussed. The implications and suggested areas for future research are discussed.(AKP)