Caught in the spider's web: an investigation of dysfunctional behavioural patterns in a family firm

Abstract

PurposeDrawing on the theory of goal systems applied to family business this case study focuses on the interdependence between non-economic goals and family goals, in order to identify if and how achieving non-economic goals generates dysfunctional behavioural patterns for family members in the long term.Design/methodology/approachThis study used an inductive, 20-year longitudinal case-study based methodology.FindingsThis case study shows how the business family faces ethical/affective dimensions, struggling every day for a balance and often undermining the legitimisation and differentiation of its children. Findings show that the achievement of non-economic goals can occur to the detriment of family goals, such as by generating a dysfunctional system, specifically in business family adaptability.Research limitations/implicationsThe principal limitation is that this single case study evidently does not allow for complete generalization of the findings.Practical implicationsThis case study makes a contribution to alerting the family business system to the long-term risk they face in trying to simultaneously maintain both harmony/cohesion and ethics/responsibility. Practitioners and consultants are therefore called on to help family firm owners with adopting a strategic vision by considering possible long-term counterfinal (i.e. mutually incompatible) goals.Social implicationsSMEs are the most widespread type of firm in the world, and consequently dysfunctional behavioural patterns within business families represent a prominent socio-economical problem for policy makers and institutions.Originality/valueThis study shows that, in the long term, that which is perceived to be a desirable goal can transpire to be a dysfunctional pattern. In doing so, this research introduces a new point of view to the literature on goal systems in family business.

Family entrepreneurship: a perspective article

“…On the other hand, research has also shown that family members can also have a potentially negative effect on the firm: protected by their family affiliation, their lack of competencies, skills or misaligned values go unnoticed or unsanctioned (Kidwell et al, 2012). Moreover, the achievement of noneconomic goals can occur to the detriment of family goals, such as by generating a dysfunctional system, specifically in business family adaptability (Ferrari, 2022). Family business literature justifies this absence of (economic) sanction via the concept of "socio-emotional wealth" or "SEW."…”

“…On the other hand, research has also shown that family members can also have a potentially negative effect on the firm: protected by their family affiliation, their lack of competencies, skills or misaligned values go unnoticed or unsanctioned (Kidwell et al ., 2012). Moreover, the achievement of noneconomic goals can occur to the detriment of family goals, such as by generating a dysfunctional system, specifically in business family adaptability (Ferrari, 2022). Family business literature justifies this absence of (economic) sanction via the concept of “socio-emotional wealth” or “SEW.” SEW explains that family businesses can prioritize the welfare of the family over that of the economic performance of the firm: here turning a blind eye on the lack of competencies of a family member, to the detriment of organizational efficiency (see Smajić et al ., 2022 for a recent review).…”

Is Fiji's tourism sector on the right path to successfully recovering from the COVID-19 crisis? A rapid assessment

“…The economic impact of the pandemic was particularly severe within the micro, small, and medium tourism enterprises (MSMTEs) as they have lost seven times more income than MSMEs in non-tourism sectors (International Finance Corporation, 2020). MSMEs are the most widespread type of enterprise in the world with profound economic and non-economic impacts, especially at the grassroots level of society (Ferrari, 2022). Particularly within the tourism sector, around 80% of enterprises are MSMEs, which employ a substantial percentage of women and young people (UNWTO, 2020).…”