Decision-Making: Emotions can heavily influence decision-making processes within family businesses. Personal relationships and familial ties may lead to decisions being made based on feelings of loyalty, trust, or even conflict, rather than solely on rational business considerations.
Conflict Resolution: Emotions often come into play when resolving conflicts within family businesses. Disputes arising from disagreements over strategy, succession, or roles within the business can become emotionally charged due to the personal nature of the relationships involved.
Succession Planning: Emotions play a crucial role in succession planning, especially during transitions between generations. Issues such as disagreements over leadership, differing visions for the future direction of the business, and concerns about fairness or favoritism can evoke strong emotional responses among family members.
Motivation and Commitment: Emotions can drive motivation and commitment among family members working in the business. Feelings of pride, belonging, and a desire to uphold the family legacy can inspire individuals to work hard and invest themselves fully in the success of the business.
Workplace Culture: Emotions contribute to the overall workplace culture within family businesses. Positive emotions such as trust, camaraderie, and mutual support can foster a positive work environment, while negative emotions such as resentment, jealousy, or unresolved conflicts can create tension and disrupt productivity.
Overall, emotions can shape the dynamics, decisions, and ultimately the success of family businesses, making it essential for family members to navigate and manage them effectively.
Reference
Bertschi-Michel, A., Kammerlander, N. and Strike, V.M. (2019) 'Unearthing and alleviating emotions in family business successions,' Entrepreneurship Theory and Practice, 44(1), pp. 81–108. https://doi.org/10.1177/1042258719834016.
Labaki, R., Michael-Tsabari, N. and Zachary, R.K. (2013) '31 Emotional dimensions within the family business: towards a conceptualization,' ResearchGate [Preprint]. https://doi.org/10.13140/2.1.4378.0168.