Family Business, Identity Conflict, and an Expedited Entrepreneurial Process: A Process of Resolving Identity Conflict

Abstract

Drawing on Identity Control Theory (ICT) and the literature on social identity, we offer a model of the dynamics associated with competing family and business identities brought into conflict by "family-business" events. We introduce the notion of the family-business role as a distinct identity functioning at the intersection of family and business identities. This meta-level identity "manages" conflict between the family and the business identities, and is formulated and transformed within the family structure. To illustrate the dynamics of the family-business meta-identity, in this article we focus on entrepreneurial opportunities as potentially identity conflict-triggering events and illustrate how and with what impact the meta-identity works to resolve identity conflict at the intersection of family and business so as to expedite the entrepreneurial process. We conclude with a discussion of the implications of our model. "Other things may change us, but we start and end with family." -Anthony Brandt

Entrepreneurial Identity

“…These synergies could positively contribute to the performance of the family firm (Kellermanns and Eddleston 2004) and to the entrepreneur's and family members' psychological well-being (Shepherd and Haynie 2009b). Research has suggested, for instance, that systemic family influences can enhance firm success (Habbershon et al 2003;Kellermanns and Eddleston 2004).…”

“…In a similar way, we define the business owner identity as the set of behavioral expectations associated with the business owner role (Shepherd and Haynie 2009b). Both psychological and business perspectives generally state that the role as a business owner is associated with expectations about behaviors that yield extrinsic returns (e.g., growth, financial earnings, public recognition) (Kuratko et al 1997), commitment to the firm and its members (Muse et al 2005), legitimacy in a social context (Malach-Pines et al 2005), and security and prosperity for the family (Kuratko et al 1997).…”

“…Building on identity control and social identity theory, my (Dean) colleague and I (Shepherd and Haynie 2009b) concluded that the family and business identities are combined within a meta-identity-what we termed the family business meta-identity. This family business meta-identity is a higher-level identity that delineates "who we are as family" and "who we are as a business" such that it captures these occasionally competing identities.…”

“…Compared to non-family business, in family businesses, individuals often have to balance competing expectations regarding their behaviors for at least the family role and the entrepreneurial role. Because one's identity is characterized by expectations of behaviors for a socially attributed role (Stryker and Burke 2000), we define the family identity as the set of behavioral expectations associated with the family role (Shepherd and Haynie 2009b). Psychologists and sociologists in general contend that the family role embodies expectations about behaviors related to nurturing (Giordano 2003), protection (Goldberg et al 1999), care giving (Lechner 1993), loyalty and commitment to the family (Knoester et al 2007), and perceptions of collective gain/loss (Berger and Janoff-Bulman 2006).…”

Researching Entrepreneurial Failures

“…While research has explored work-life balance among entrepreneurs (Shepherd & Haynie, 2009a, 2009b, we know little about how entrepreneurs continue to achieve work-life balance when the work aspect of this relationship has ended in failure. For instance, is an entrepreneur able to compartmentalize a failure into his or her work micro-identity, thus making the failure have minimal effect on other micro-identities (e.g., the "spouse" microidentity), or does the failure lead to spillover effects?…”