MOST COMMON COGNITIVE BIAS IN FAMILY BUSINESS MANAGEMENT

Abstract

Due to the interaction of two incompatible systems: family and business, family business managers may have cognitive biases that result in an ineffective management. Therefore, the objective of this research study was to identify and determine the most common biases in the management of a family structure business. A documentary investigation was carried out with the purpose of compiling in a single document such biases. The analysis made it possible to conclude that the identified biases arise precisely from the interaction and incompatibility of these two systems; and that the absence of knowledge on the part of the business family and of directors of familiar companies of the presence of these biases impacts the permanence and consolidation of the familiar company.