Merchandising/Marketing/Retailing: Branding

Unraveling Morality: The Impact of Business Size and Family-Owned Businesses on Trust Formation 

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Abstract

Family-owned businesses are vital to local economies but face challenges competing with larger firms. This study examines how consumer perceptions of family ownership and business size influence trust, focusing on morality as a mediator. Drawing on consumer inference theory, we propose that family ownership and small size serve as extrinsic cues fostering trust through perceived morality, authenticity, ethicality, and benevolence. An online experiment (N=389) revealed that family ownership and small size positively affect trust, which in turn strengthens attitudes and behavioral intentions. Morality mediated the effect of family ownership on trust via authenticity but not through ethicality or benevolence. While size did not moderate these effects, it influenced trust independently through authenticity and benevolence. These findings highlight the importance of emphasizing morality and authenticity to enhance consumer trust in family-owned and small businesses.

Keywords: family business, size perception, morality, authenticity, trust

How to Cite:

Kim, T., Im, H. & Chen, Z., (2025) “Unraveling Morality: The Impact of Business Size and Family-Owned Businesses on Trust Formation ”, International Textile and Apparel Association Annual Conference Proceedings 81(1). doi: https://doi.org/10.31274/itaa.18624