Towards A Theory Of The Family Firm: Approach To An Operational Definition And A Framework For Family Businesses Research

Abstract

Family business research is still a relatively new field of study in which researches are hardly giving their first steps. According to several scholars a “Theory of the Family Firm” is needed to explain the features that make a family business “unique” and different from non-family firms (Chrisman, et al., 2005). This theory of the family firm should start with a definition of the family business, since defining the object of study is a key requirement for progress in any field. However, so far, there is not a generally accepted definition for the family business. It is probably owed to the complexity of each of the two subsystems that overlap in a family business: the family and the business. Therefore, in this work we review the literature in order to make an approach to a single and operational definition of family business. Moreover different theories are provided to lead theoretical perspectives and make progress in the construction of a framework in which empirical research can be properly interpreted for better understanding the features, outcomes and behaviours of the family firms. Thus, the agency theory, the resource and capacities theory and the stewardship theory are analysed in this work. We conclude by discussing directions for future research concerning family business.