The Family Protocol in Argentina. A Perspective from the Agency and Stewardship Theory and a Perception of Family Business Owners and Top Managers

Abstract

This study seeks to examine the perspectives of family business owners and CEOs in Argentina on the necessary topics and elements to include in a family protocol that enhances family business continuity. Our model connects both Agency Theory and Stewardship Theory to the protocol with a focus on its impact on continuity. Data was collected through a survey completed by 220 family businesses in Argentina. Structural Equation Modeling was utilized to verify the model. The survey respondents' perception indicates that a family protocol aids the continuation of a family enterprise when it includes norms that diminish agency issues and promote stewardship behavior. Board formation regulation and family-business relation management are norms that lead to reducing agency issues. Thus, it is regarded as an efficient mechanism to avert or resolve conflicts without detrimental effects. Elements that endorse stewardship conduct include those that facilitate the emergence of a shared perspective, sense of membership, values, principles, traditions, and culture concerning both the content and the process. Accordingly, the two theories would be complementary.