| The focus of this research is the interaction between the constraints of family members who own and/or manage a family business and the competitive requirements of that business. This interaction provides the major impetus for change in the family-business relationship. The consequences of this interaction has both strategic and operation effects in the business.; Using a clinical research methodology, data were collected from twelve family businesses on several organizational levels in each business. Data collection focused on history and development of strategy, operations and management systems, and the family association with the business. Interviews were also conducted with approximately fifteen individuals who work for or with family firms.; Analysis of the data produced a theoretical framework for the family-business relationship. The family-business relationship passes through four stages of development which are labeled Prefamily, Family, Adaptive Family, and Postfamily. The sequence and timing of the development of the relationship through the stages are related to the process of adjusting discrepancies between family constraints and competitive requirements of the business.; A series of propositions is presented based on the framework which suggests that the management of the family-business relationship requires appraisal of the power bases of management and the rate of change in the environment, as well as recognition of family constraints as a factor in strategic decision-making. |
