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Family business goal formation: a literature review and discussion of alternative algorithms

Author

Listed:
  • Ralph I. Williams

    (Middle Tennessee State University)

  • Torsten M. Pieper

    (University of North Carolina Charlotte)

  • Franz W. Kellermanns

    (University of North Carolina – Charlotte)

  • Joseph H. Astrachan

    (Kennesaw State University)

Abstract

Goals represent an organization’s desired outcomes, and family businesses are known to pursue multiple goals, which commonly include both financial and non-financial aspects. While family business goals have garnered much attention among researchers, relatively little is known about the approaches that family businesses use to shape their idiosyncratic goal sets. The purpose of this article is twofold. First, we review the family business literature and synthesize the current knowledge regarding goal formation. Second, we incorporate insights from extant organizational goal literature and discuss various approaches (algorithms)—specifically, maximizing, satisficing, and optimizing—that family businesses may employ to select goals. These insights form the foundation for our discussion and recommendations for future research aimed at furthering the understanding of family business goal formation.

Suggested Citation

  • Ralph I. Williams & Torsten M. Pieper & Franz W. Kellermanns & Joseph H. Astrachan, 2019. "Family business goal formation: a literature review and discussion of alternative algorithms," Management Review Quarterly, Springer, vol. 69(3), pages 329-349, September.
    • Handle: RePEc:spr:manrev:v:69:y:2019:i:3:d:10.1007_s11301-019-00155-8
    DOI: 10.1007/s11301-019-00155-8
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    References listed on IDEAS

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    Cited by:

    1. Torsten M. Pieper & Ralph I. Williams Jr. & Scott C. Manley & Lucy M. Matthews, 2020. "What Time May Tell: An Exploratory Study of the Relationship Between Religiosity, Temporal Orientation, and Goals in Family Business," Journal of Business Ethics, Springer, vol. 163(4), pages 759-773, May.
    2. Stefano Amato & Rodrigo Basco & Nicola Lattanzi, 2022. "Contextualizing employment outcomes in family business research: current findings and future research avenues," Management Review Quarterly, Springer, vol. 72(2), pages 531-604, June.
    3. Jessenia Davila & Luis Gomez-Mejia & Geoff Martin, 2024. "Family Firms and Employee Pension Underfunding: Good Corporate Citizens or Unethical Opportunists?," Journal of Business Ethics, Springer, vol. 192(2), pages 323-339, June.
    4. Mikoláš Zdeněk & Matejun Marek, 2023. "Theory and practice of the evolutionary networks of potential in a family business succession," Journal of Economics and Management, Sciendo, vol. 45(1), pages 345-373, January.
    5. Chen, Shihui & Wu, Bingde & Liao, Zhongju & Chen, Ling, 2022. "Does familial decision control affect the entrepreneurial orientation of family firms? The moderating role of family relationships," Journal of Business Research, Elsevier, vol. 152(C), pages 60-69.
    6. Basco, Rodrigo & Hair, Joseph F. & Ringle, Christian M. & Sarstedt, Marko, 2022. "Advancing family business research through modeling nonlinear relationships: Comparing PLS-SEM and multiple regression," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    7. Jenny Kragl & Alberto Palermo & Guoqian Xi & Joern Block, 2023. "Hiring family or non-family managers when non-economic (sustainability) goals matter? A multitask agency model," Small Business Economics, Springer, vol. 61(2), pages 675-700, August.
    8. Dou, Junsheng & Wang, Ning & Su, Emma & Fang, Hanqing & Memili, Esra, 2020. "Goal complexity in family firm diversification: Evidence from China," Journal of Family Business Strategy, Elsevier, vol. 11(1).

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