Unlocking the secrets of family firms: exploring dialogue capacity through a secularization perspective in Germany, Austria, and Switzerland

Abstract

Family firms (FFs) are characterized by their unique emphasis on specific beliefs and values (BaV). Although literature acknowledges the significance of BaV for firm behavior and management decisions, little is known about their religious and secular sources. Following secularization theory and post-secular society, the impact of religion in developed societies such as the DACH region (Germany, Austria, Switzerland) remains ambiguous, challenged by both secularization and religious revival. We address this research gap by exploring the religious and secular sources of BaV through FFs’ dialogue capacity. Our qualitative-empirical study builds on semi-structured interviews with 21 large FFs from the DACH region, covering mostly family CEOs, and secondary data. Using an inductive approach, we identify FFs where religion remains significant, even as their dialogue capacity undergoes transformation. Secularization necessitates that religious sources to adapt to the secular business context. Thus, our findings do not conform to the open dialogue claimed by post-secular society. Additionally, the proposed dichotomous separation into a religious sphere and a secular sphere does not correspond to the actual landscape of FFs. Instead, three different shades of FFs emerge, which demonstrate unique dynamics in their dialogue capacity. This paper provides novel in-depth insights on BaV in FFs and is among the first empirical studies on secularization and post-secular society from a business perspective. Furthermore, it contributes a process model of FFs’ dialogue capacity and proposes avenues for further research.