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Family Business Review
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A New Perspective on the Developmental Model for Family Business

Matthew W. Rutherford

Auburn University in Organizational Analysis and Change

Lori A. Muse

Auburn University in Human Resource Management and Organizational Analysis and Change

Sharon L. Oswald

Department Head of Management at Auburn University, holds the Colonel George Phillips Privett Professorship in Business

This research contributes to the family business literature by providing the first empirical test of the developmental model for family business (DMFB), developed by Gersick, Davis, Hampton, and Lansberg (1997). Our testing of the DMFB, along with a review of the literature since its publication, allow us to identify key groups of variables that can help explain family business development. Specifically, we identify owner, firm, and family characteristics to augment the DMFB. Our hierarchical regression analysis of 934 firms suggests that the original model provides asolidfoundation forclassifyingfamily firms, but the augmented model explains significantly more variance in family firm development.

Family Business Review, Vol. 19, No. 4, 317-333 (2006)
DOI: 10.1111/j.1741-6248.2006.00079.x
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