Discussion: View Thread

Theme:

OWNERSHIP, PURPOSE & RELATIONSHIPS: A HUMAN-CENTRIC VIEW ON FAMILY FIRMS

Ownership is a fundamental dimension that uniquely defines family businesses (Brundin et al., 2014; Connelly et al., 2010). Unlike business structures where ownership is widely dispersed or formed through coalitions of institutional and industrial investors pushing more towards profit as a pure goal, family businesses are generally characterized by a combination of personal values, traditions, and long-term commitments. Specifically, dispersed ownership structures tend to emphasize profit-driven goals due to market orientation and the need to establish common ground among diverse shareholders with potentially conflicting interests (Durand, 2023; Gedajlovic & Carney, 2012). In contrast, family businesses are characterized by the integration of several key nonfinancial elements of ownership into the strategic and operational decisions of the business: the relationship among the owning family and their interactions with various stakeholders-including employees, customers, suppliers, and the local community (e.g., Aguilera, 2023). These close connections between family and nonfamily stakeholders create an organizational environment where nonprofit-driven goals, such as preserving the family legacy, ensuring employee welfare, building lasting customer relationships, fostering loyal supplier partnerships, and contributing to community development, are as prominent as financial objectives.

This purposeful approach to ownership stands in stark contrast to the impersonal nature of technostructural algorithmic in decision-making that is increasingly prevalent in many market-driven contemporary business environments (Lindebaum, Vesa, & Den Hond, 2020). While algorithms and data-driven strategies offer efficiency and scalability, they largely lack human elements that are instead embedded in family businesses. The purpose of family businesses depends on the people and relationships behind the organization (DesJardine et al., 2023). For instance, families exercise ownership rights and leverage their competence to bring shared values, traditions, and long-term commitments to the business (e.g., Foss et al., 2021; Schulze & Zellweger, 2021). These values often include a sense of responsibility towards preserving the family legacy, maintaining the family's reputation, and ensuring the business remains a source of pride for future generations. Furthermore, family businesses often develop solid and loyal relationships with nonfamily internal and external stakeholders grounded in trust and mutual respect. Employees are treated as extended family, customer relationships are built on long-term satisfaction rather than short-term profits, and suppliers are seen as partners in success (e.g., Cennamo et al., 2012). The local community benefits from the family business's commitment to social responsibility and community development. These relationships foster a sense of loyalty and shared purpose (e.g., Suddaby et al., 2023). Decision- making in this context is relational (e.g., Ben-Shahar et al., 2023), considering the impact on family dynamics and stakeholders' well-being.

Although Artificial Intelligence and algorithms may improve decision-making efficiency and maximize short-term profits, they often overlook the long-term impacts on relationships and community well-being. This is because they lack the ability to understand the contexts that human relationships and values bring to business decisions. Purposeful ownership in family businesses often involves personal accountability, where family members take responsibility for the outcomes of their choices and often tie them to ethical ideals (Le Breton-Miller & Miller, 2020). This accountability is deeply rooted in their personal and family identity, unlike algorithmic decisions that can diffuse responsibility, making it challenging to assign accountability for adverse outcomes.

Thus, ownership with purpose in family businesses is fundamentally dependent on people and relationships. This human-centric approach ensures that business decisions are aligned with the values, missions, and long-term goals of the family, fostering a sense of purpose that transcends mere profitability (e.g., George et al., 2021).

Based on these crucial considerations, we propose as a theme for IFERA 2025 "Ownership with Purpose: People and relationships." The theme aims to explore the unique role that family firms play in fostering purposeful ownership that involves and prioritizes people and relationships over impersonal algorithmic decision-making. We invite scholars to investigate how the interplay of family and business dynamics drives purposeful ownership and the implications of such endeavors. Key areas of focus include but are not limited to:

Purpose and impact:

• What challenges do family businesses face in maintaining purposeful ownership in competitive, profit-driven markets?
• What strategies can family businesses employ to sustain their purpose-driven approach in the face of external pressures?
• What are the implications of relational decision-making in family businesses for stakeholder well-being and community development?

Family conflict and resolution:

• How do different members' purposes align with the values and traditions of their family business?
• What are the sources of conflict within family businesses, and how are they resolved in ways that preserve family dynamics and relationships?
• How does family conflict affect aligning business decisions with the family's nonprofit- driven goals?

Succession and Leadership:

• How do shared values and traditions within family businesses influence leadership development and succession planning?
• What challenges do family firms face in succession planning that prioritizes long-term commitments and family legacy?
• How do leadership transitions in family businesses impact the preservation of nonprofit-driven goals and organizational culture?

Employee relationships and retention:

• How do family businesses foster a sense of loyalty and trust among nonfamily employees, treating them as an extended family?
• What strategies do family firms use to retain key talent while focusing on employee welfare and mutual respect?
• How does the emphasis on long-term relationships in family businesses impact employee retention compared to nonfamily businesses?

Interpersonal relationships:

• How do personal relationships among family members impact the strategic direction and performance of the family business?
• What role do trust and emotional bonds play in the decision-making processes that emphasize nonprofit-driven goals in family firms?
• How do family businesses integrate nonfamily stakeholders into their relational decision-making processes, and what are the outcomes of these integrations?

Gender roles and inclusion:

• How do gender roles within the family influence leadership and decision-making in family businesses focused on building and preserving family legacy?
• What is the role of women in family firms, and how does it align with the firm's commitment to long-term relationships and employee welfare?
• How do family businesses approach diversity and inclusion within their organizational structure while maintaining their core values?

Motivation and engagement:

• What are the unique challenges in maintaining family and nonfamily members' engagement in family firms that focus on preserving family legacy and relationships?
• What motivates family members to participate in the family business, and how does this motivation align with the business's long-term commitments?
• How do family businesses engage and motivate their workforce, both family and non- family, by prioritizing employee welfare and long-term satisfaction?

Mentorship and development:

• What role does mentorship play in transferring knowledge and skills across generations in family firms committed to a shared purpose?
• How do family businesses approach the mentorship and development of family and nonfamily employees in ways that align with their values and long-term goals?
• How effective are mentorship programs in family businesses compared to nonfamily companies in fostering solid and loyal relationships?

Work-family balance:

• How do family businesses manage the intersection of personal and professional relationships to foster a sense of shared purpose?
• How do family members in family businesses balance work and personal life while maintaining their commitment to family values and legacy?
• How do family businesses support the work-life balance of their employees while fostering a sense of loyalty and mutual respect?

We look forward to your submissions!