Entrepreneurial Opportunity Exploitation and the Family: Relationship-based Factors That Affect the Adult Child’s Decision to Join With Parents in a New Venture

Prior researchers have identified several predictors of an adult child’s decision to join with parents in an existing family business. However, these studies have not whether such a decision was dependent on the particular parent involved in the new venture or the relative hierarchical roles of the two parties in the new venture. This study assesses the significance these factors have on that decision. This assessment compared the goodness-of-fit of models reflecting these factors using confirmatory factor analysis. The study offers evidence that the adult child will be more likely to join a new venture with parents when they offer a position as co-owner rather than a subordinate. This finding provides important insights into factors that participants and advisors should consider in planning for the creation of new family business ventures.

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