The Family Factor: The Impact of Family Relationship Dynamics on Business-Owning Families during Transitions

This paper presents preliminary findings from three longitudinal case studies forming part of ongoing doctoral research into the activities and dynamics of business-owning families as they address the tasks and issues required during their succession processes. Specifically, the paper qualitatively explores the nature, characteristics, and effects of family relationship dynamics in three family business systems undertaking the transfer of controlling ownership to the next generation (from father to son). A model is presented to describe the sources of anxiety “imperatives” and their management during transition processes. Conclusions are drawn about the characteristics of emotional dynamics in business-owning families and how these can, over time, hinder or help families manage these tasks.