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Emotions Preventing Survival of Family Firms: Comments on Exploring the Emotional Nexus in Cogent Family Business Archetypes: Towards a Predominant Business Model Inclusive of the Emotional Dimension

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  • Rau Sabine B.

    (WHU – Otto Beisheim School of Management, Vallendar, Germany)

Abstract

In this commentary, I provide some extensions to the emotional nexus in cogent family business archetypes. Labaki, Michael-Tsabari, and Zachary (2013) argue that emotions bind the family and the business subsystem. Emotional cost and return as well as emotional dissonance have a major impact how family and business interact. From here, I provide some ideas showing how emotions can prevent those businesses from surviving to the third generation and beyond. Main effects are an increase of the probability of bankruptcy, sale by family members, and disappearance of the family due to negative ratio of emotional return and emotional cost, as well as high emotional dissonance.

Suggested Citation

  • Rau Sabine B., 2013. "Emotions Preventing Survival of Family Firms: Comments on Exploring the Emotional Nexus in Cogent Family Business Archetypes: Towards a Predominant Business Model Inclusive of the Emotional Dimension," Entrepreneurship Research Journal, De Gruyter, vol. 3(3), pages 425-432, July.
    • Handle: RePEc:bpj:erjour:v:3:y:2013:i:3:p:425-432:n:5
    DOI: 10.1515/erj-2013-0055
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    References listed on IDEAS

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    1. Reginald Litz & Nick Turner, 2013. "Sins of the Father’s Firm: Exploring Responses to Inherited Ethical Dilemmas in Family Business," Journal of Business Ethics, Springer, vol. 113(2), pages 297-315, March.
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