Publication Date

2015

Document Type

Article

Disciplines

Business

Comments

Published in Corporate Ownership and Control. Permission has been secured to include this contribution in the Liberty University’s scholarly repository. All Rights Secured. No copy of this file may be sold or reprinted in whole or in part. To purchase the entire journal issue that contains this contribution, please visit the website of the publication: http://www.virtusinterpress.org/-Corporate-Ownership-and-Control-.html.

Obradovich, John. “Non-Resident Family Members and the Financial Performance of Small Businesses in India.” Corporate Ownership and Control 12 2 (2015): 542-552.

Abstract

Recent literature in small business management suggests that small businesses are financially constrained. They also face challenges of poor financial performance, which leads to their failure. Literature also shows that family involvement improves small business performance. We asked research participants consisting of small business owners from India about their beliefs and perceptions regarding the relationship between non-resident Indian family members (NRIs), financial support from NRIs, internal financing sources, and the financial performance of small businesses. Results indicate that the involvement of NRIs as foreign directors, financial support from NRIs, and internal financing sources improve the financial performance of small businesses in India. Firms with NRIs are more likely to perform better than without NRIs. Moreover, the influence of NRIs on the financial performance of small businesses is higher in the service industry than the manufacturing industry.

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