From People to Performance: Factors Driving Sustainable Family Business Success in Lebanon

This research examines the impact of five crucial factors underlying human resource management (HRM), namely, compensation, transformational leadership, motivation, and job satisfaction on sustainable employees’ performance in Lebanese family companies. The research is founded on Social Exchange Theory, Maslow’s Hierarchy of Needs, and Transformational Leadership Theory. Based on a cross-sectional design and quantitative approach, data were collected from 511 full-time employees working for family-owned businesses in Lebanon via structured questionnaires. Structural equation modeling (SEM) using SmartPLS-4 was used to analyze the relationships among the variables. The results point out that job satisfaction, motivation, and the transformational leadership style meaningfully impact employees’ performance. Compensation had a slight yet statistically significant effect. Furthermore, the work environment was found to have both a direct influence on performance and a moderating effect on the relationships between job satisfaction, transformational leadership style, and employees’ outcomes. These outcomes provide theoretical contributions to the literature on HRM in family-owned enterprises and deliver practical insights for improving employees’ performance through targeted HR strategies in emerging economies. The present study concludes by highlighting the role of a supportive environment at work and participative leadership in enhancing performance outcomes, mostly in culturally complex and intergenerational business settings.