Keeping it in the family: a socio-cognitive approach to the prioritization of family goals
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 18 May 2020
Issue publication date: 9 June 2020
Abstract
Purpose
As the prioritization of family goals depends on the resolution of family conflict, this study's purpose is to explain how a dominant coalition (DC) of parental family members prioritizes their family economic and non-economic goals when faced with different types of family conflict.
Design/methodology/approach
A conceptual framework is developed drawing on a socio-cognitive approach to explain a family's goal formation process. This socio-cognitive approach extends the stakeholder salience underpinnings of family influence/essence theory. It shows that family conflict arises from the complex and novel social settings of a family business and that a DC prioritizes their family's goals by drawing on heuristic biases to resolve such family conflict.
Findings
A key finding of this study is the introduction of a distinct type of agency to family influence/essence research. Unlike the salient explanations, a family's goal formulation process is attributed to a DC's heuristic response in resolving their family business conflict.
Originality/value
Scholars have called for a greater need to investigate the social and cognitive underpinnings of a family's goal formation process. While the social settings of a family business are often explained in terms of family conflict, an understanding of the sources of such conflict and their resolution have received limited attention. This study opens new avenues to understanding the sources of such family conflict and the cognitive mechanisms needed to overcome them. This understanding is critical not only to the prioritization of a family's goals but also to the idea that “influence” defines the essence of a family business.
Keywords
Acknowledgements
We appreciate the comments and suggestions from anonymous reviewers. This project was supported by Hatch project numbers TEX0-1-9063 and MO-AC011AC047.
Citation
Ng, D., James Jr, H.S. and Klein, P.G. (2020), "Keeping it in the family: a socio-cognitive approach to the prioritization of family goals", Journal of Small Business and Enterprise Development, Vol. 27 No. 3, pp. 471-487. https://doi.org/10.1108/JSBED-07-2019-0257
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited