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The business family 3.0: Dynastic business families as families, organizations and networks—Outline of a theory extension
Author(s) -
Kleve Heiko,
Köllner Tobias,
Schlippe Arist,
Rüsen Tom A.
Publication year - 2020
Publication title -
systems research and behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 1092-7026
DOI - 10.1002/sres.2684
Subject(s) - family business , shareholder , extension (predicate logic) , function (biology) , dual (grammatical number) , business , point (geometry) , dual function , business rule , knowledge management , public relations , marketing , business process , computer science , political science , finance , corporate governance , art , geometry , literature , mathematics , evolutionary biology , biology , programming language , contouring , computer graphics (images) , work in process
This paper's point of departure is that business families are permanently confronted with a dual function: They engage in typical family relations yet also have formal decision‐making processes for business and family strategy. However, large business families—which may consist of several hundred shareholders who own one or more family businesses—are confronted with an additional challenge. Alongside being simultaneously a family and an organization, they also have to establish and maintain notions of membership and modes of communication between distantly related shareholders. This we have called family network or family 3.0. The challenges involved in initiating, shaping and maintaining such networks require new strategic reconsideration in the family itself and an extension of the existing theoretical observations regarding family businesses, thereby establishing the basis for a better understanding of large‐scale business families. For this, we try to combine family business research, organization studies and systems theory.