Managing family business tensions: the narrative of family history

Abstract

PurposeThis study explores the family governance structures that family firms employ to manage family business tensions.Design/methodology/approachBuilding on socioemotional wealth perspective and adopting a narrative methodological approach, the study analyses nine unique narratives of representatives of three Swedish family firms.FindingsThe study illustrates how the hybrid arena created between formal and informal family meetings is used as a governance structure for mitigating tensions by reinforcing family relational ties.Research limitations/implicationsBased on the findings, this study suggests how reliance on hybrid arena informs the field of family business management and governance and suggests future research directions.Practical implicationsThe findings of this study provide opportunities for family business practitioners, including owners, family members, family firm advisers and other stakeholders, to effectively manage family business tensions and foster socioemotional wealth.Originality/valueIn family firms, tensions can arise due to a desire for the preservation of socioemotional wealth. The authors show that these tensions may be managed by using informal and formal family meetings that create a hybrid arena where family members separate family and business issues and emotional and rational reactions, thereby avoiding negative emotions and creating a culture of harmony within the family.

Accountants in family firms—a systematic literature review

“…Finally, storytelling and narrative approaches have gradually entered the family business literature (e.g., Arteaga & Uman, 2020;Fletcher et al, 2016) and have been well represented in the field of accounting (e.g., Beattie, 2014;Beattie & Davison, 2015). While our review suggests that the field has advanced an understanding of the role, few studies delve into the accountant's subjective experiences of recruitment and subsequent employment, being employed, or ceding their employment in family firms.…”

Governance in family firms: how to ensure continuity

“…In addition, the family constitution defines the relationships among the governance bodies and how family members can meaningfully participate in the governance of their business. Even if it is not possible to eliminate the conflict which arise in family firms these organisations need to deal with them in order to minimise their negative consequences (Arteaga & Uman, 2020). And, the family protocol, as a governance policy tool, can help ameliorate intra-family conflict and enhance the probabilities of survivability of the family business.…”

Unravelling the determinants of family firms' governance: the family protocol

“…Arteaga and Uman (2020) illustrate how hybrid structures, combining formal and informal family meetings serve as governance tools for mitigating tensions and reinforcing family bonds within family businesses. These findings have practical implications for practitioners, including owners, family members, advisers and stakeholders, in managing family business tensions and nurturing socioemotional wealth.…”

“…The most recurrent conflicts have to do with the relationship between family and ownership, even if it is not possible to eliminate these tensions in family firms, these organizations need to deal with them in order to minimize their negative consequences (Arteaga and Uman, 2020). And, the FP, as a governance policy tool, can help ameliorate intra-family conflict and enhance the probabilities of survivability of the family business.…”