Strategy and Performance of Family Businesses: Comparison of Pakistan and the Czech Republic

ABSTRACT In this paper, we observe how effective the use of strategies is in relation to the objectives of family businesses. Data collected in spring 2024 by interviews were processed using DEA. Respondents were owners of small family businesses; 169 valid responses were obtained from each country. The assessment reflected the differences between the countries. For Pakistani companies, the human resources management strategy and the growth and expansion strategy were found to be the most valuable and yielded high production. The most frequent outputs were the relationship between the family and their business, as well as family beliefs and religion. In the case of the Czech owner, there is only a strategy of competitiveness that provides equal output. The results here were related to economic performance. An innovative approach is the use of the DEA method, which sets the production‐possibility frontier and thus determines which strategies are currently inefficient.