A grounded theory study: Understanding individual realities of living the family business phenomenon

This Qualitative research study has been designed to seek discovery of what it is like to be involved in a family business. There is need for a greater understanding of the underlying motivations that impact behaviors within the family business phenomenon. The purpose of this study has been to build on the existing knowledge of this phenomenon and to develop new theory following the procedures outlined for grounded theory. Data collection came from face-to-face interviews with 12 participants from small family businesses of varying types located in the Midwest of the U.S.. In summary, five common themes that emerged from the interviews state that involvement in family business has many high-stakes challenges and deeply meaningful benefits. These two themes are well supported in the life experiences shared by the participants. Family values impact ways of thinking and behavior of individual family members. All participants talked about the importance of taking care of both family and the family business needs. Effective governance strategy for family business must consider both the interests of individual family members and the needs of the family business. From these five themes, two new theories emerged. Technology theory suggests that challenges connected to technology changes within the family business has a significant and reverberating impact within the family business system, influencing redistribution of power and individual roles. Multi-generational family values have emerged as another new theory from the data analysis. Based on the data analysis of this study the influencing power of embedded family values compounds through generations. Additionally, embedded family values passed down through multiple generations can have a powerful impact on family relationships and business practices. Questions for additional research studies include: What is it like to be involved in a sibling group managing the family business, and how might reprocessing of past experiences improve family relationships and business practices within the family business. Management by sibling group and family baggage were areas for additional research that emerged as challenges for individuals involved in family business.