The mediating role of family management in the relationship between management styles and firm economic performance

The study aims to explore the relationship between leadership styles and the firm’ economic performance mediated byfamily management. A questionnaire survey was conducted to collect data from both managers and employees across 59firms situated in Bamako and peripheries, Mali. On basis of 733 recovered questionnaires, the research used the regression analysis method to test direct effects, while the Sobel procedure have been applied to test indirect effects. The results show that in a poor business environment, authoritative, persuasive, and participatory leadership styles exhibit a significant and positive correlation with firm economic performance. However, the direct impact of the consultative style is found to be non-significant. Furthermore, authoritative, persuasive and participatory styles manifest significant indirect effects through the mediation of family members' involvement in firms’ management.Surprisingly but reasonably, family management has linear negative impact on firm’ economic performance. These conclusions align partially with the perspectives of family involvement and family governance theories, unveiling the diverse effects of management styles on firm economic performance and underscoring the necessity for family environment improvement.