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Unrelated but together: Trust and intergroup relations in multi-family businesses

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  • Kudlats, Jerry
  • McDowell, William C.
  • Mahto, Raj V.

Abstract

While family businesses are the dominant form of enterprise in most economies, multi-family businesses with two or more unrelated founding families are not common in the family business environment. The involvement of family in a firm makes these entities and their operations more complex; managing a family firm with multiple unrelated families is even more challenging due to their higher susceptibility to inter- and intra-family conflicts. In this study, we examine why some multi-family businesses are able to avoid or manage intergroup conflicts, and how multi-family businesses can work harmoniously. We utilize a qualitative and grounded theory approach to explore five multi-family businesses using in-depth interviews with nineteen organizational members. Our analysis indicates that trust within and between families emerges as a core construct for these entities. We present a theoretical framework that explains the antecedents and outcomes of this trust and a moderating effect on the antecedent-trust relationship.

Suggested Citation

  • Kudlats, Jerry & McDowell, William C. & Mahto, Raj V., 2019. "Unrelated but together: Trust and intergroup relations in multi-family businesses," Journal of Business Research, Elsevier, vol. 101(C), pages 750-756.
    • Handle: RePEc:eee:jbrese:v:101:y:2019:i:c:p:750-756
    DOI: 10.1016/j.jbusres.2018.12.073
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    Citations

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    Cited by:

    1. Chirico, Francesco & Duane Ireland, R. & Pittino, Daniel & Sanchez-Famoso, Valeriano, 2022. "Radical innovation in (multi)family owned firms," Journal of Business Venturing, Elsevier, vol. 37(3).
    2. Mahto, Raj & McDowell, William C. & Davis, Peter, 2020. "Influence and values: The connection between participation and commitment in family firms," Journal of Business Research, Elsevier, vol. 112(C), pages 354-362.
    3. Mahto, Raj V. & Llanos-Contreras, Orlando & Hebles, Melany, 2022. "Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities," Journal of Business Research, Elsevier, vol. 145(C), pages 117-129.
    4. Sallay, Viola & Wieszt, Attila & Varga, Szabolcs & Martos, Tamás, 2024. "Balancing identity, construction, and rules: Family relationship negotiations during first-generation succession in family businesses," Journal of Business Research, Elsevier, vol. 174(C).
    5. Cristina Bettinelli & Marco Mismetti & Alfredo De Massis & Barbara Del Bosco, 2022. "A Review of Conflict and Cohesion in Social Relationships in Family Firms," Entrepreneurship Theory and Practice, , vol. 46(3), pages 539-577, May.
    6. Lobo Carla Azevedo & Fernandes Cristina & Ferreira João & Veiga Pedro M. & Gerschewski Stephan, 2023. "The Determinants of International Performance for Family Firms: Understanding the Effects of Resources, Capabilities, and Market Orientation," Entrepreneurship Research Journal, De Gruyter, vol. 13(3), pages 773-811, July.
    7. Matthias Guffler & Alexandra Bertschi-Michel & Andreas Hack & Franz W. Kellermanns, 2023. "Family firm ambidexterity: the influence of paradoxical tensions and the Entrepreneurial Family’s cohesion," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1945-1977, December.
    8. Liang, Yongyi & Yan, Ming & Law, Kenneth S. & Wang, Haibo & Chen, Yuanyi, 2021. "Integrating the bright and dark sides of leadership: An investigation of the intragroup and intergroup effects of leader group prototypicality," Journal of Business Research, Elsevier, vol. 133(C), pages 89-97.
    9. Mahto, Raj V. & Vora, Gautam & McDowell, William C. & Khanin, Dmitry, 2020. "Family member commitment, the opportunity costs of staying, and turnover intentions," Journal of Business Research, Elsevier, vol. 108(C), pages 9-19.
    10. Deferne, Marie & Bertschi-Michel, Alexandra & de Groote, Julia, 2023. "The role of trust in family business stakeholder relationships: A systematic literature review," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    11. Glyptis, Loukas & Hadjielias, Elias & Christofi, Michael & Kvasova, Olga & Vrontis, Demetris, 2021. "Dynamic familiness capabilities and family business growth: A longitudinal perspective framed within management accounting," Journal of Business Research, Elsevier, vol. 127(C), pages 346-363.
    12. Ren, Ting & Liu, Xin & Ding, Jinqiong, 2023. "Intergenerational dynamics of digital transformation in family firms," Technology in Society, Elsevier, vol. 74(C).
    13. James J. Chrisman & Kristen Madison & Taewoo Kim, 2021. "A Dynamic Framework of Noneconomic Goals and Inter-Family Agency Complexities in Multi-Family Firms," Entrepreneurship Theory and Practice, , vol. 45(4), pages 906-930, July.
    14. Dmitry Khanin & Atanu Rakshit & Raj V. Mahto & William C. McDowell, 2020. "An Ongoing race: family CEOs vs. non-family CEOs," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1043-1063, September.

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