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Abstract
This research aims to deepen our understanding of family firm leadership. An exploratory study of six successful family firms resulted in a series of hypotheses regarding the practices of successful family fit7n leaders. These hypotheses also provide insight into the leadership practices that promote effective family and firm development. Based on the findings, a model of the dynamics of family firm leader motivation and self-concept is suggested. Additional research is required to assess the strength of the hypotheses presented, particularly in other cultural contexts.
Key Words: Family business, leadership, succession
The tasks of family business leadership vary from those required of the leaders of other entrepreneurial ventures (Eggers and Smilor, 1996). In addition to starting, growing and/or maintaining a business, the family business leader's tasks involve linking the three spheres of management, ownership and family in a fashion that hopefully results in positive outcomes for all (Gersick, et al., 1995). In this sense, the leadership demands of family firms may well be more complex than those facing the leaders of non-family owned businesses. Leadership in family firms has been most closely studied through the process of succession (Dyer, 1986; Lansberg, 1988; Peay and Dyer, 1989). These authors also draw our attention to the concept of family firms undergoing a complex series of developmental transitions as family and firm mature over time.
Successful entrepreneurial firms move from start-up, through expansion and growth, to maturity (Poza, 1988). The leadership requirements for each phase of business development are likely to differ (Churchill & Lewis, 1983). As a case in point, Handler (1990) studied family firm leadership behavior from the perspective of members of the second-generation. She discovered that orderly succession seems to require a series of role transitions by the founding leader if the business is to remain a successful family business.
Business transitions begin with the start-up or founding stage. The leader's role is described as that of "sole operator" (solely in charge during the early years of the firm's life). The leader's success in growing the business brings with it considerable power over others, including the family. The leader at this stage must learn to manage that power. Handler described this leadership role as one of a "monarch," not with the intent...