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We posit that parent–child relationships lead to subsequent leader–member exchange (LMX) differentiation in family firms. This differentiation shapes a child's behavior toward the firm. Altruism is proposed to further increase the effects of LMX differentiation on workplace behavior by fostering feelings of entitlement or rebellion among out–group children and strengthening in–group children's commitment to the firm. Our article breaks new ground by explaining how parent–child relationships and LMX can result in deviant behavior in family firms, how parental altruism can create vicious and virtuous circles of behavior and how stewardship and opportunism can occur within the same family firm.
Eddleston et al. (Wed,) studied this question.