Caught in the spider's web: an investigation of dysfunctional behavioural patterns in a family firm

Abstract

Purpose: Drawing on the theory of goal systems applied to family business this case study focuses on the interdependence between non-economic goals and family goals, in order to identify if and how achieving non-economic goals generates dysfunctional behavioural patterns for family members in the long term. Design/methodology/approach: This study used an inductive, 20-year longitudinal case-study based methodology. Findings: This case study shows how the business family faces ethical/affective dimensions, struggling every day for a balance and often undermining the legitimisation and differentiation of its children. Findings show that the achievement of non-economic goals can occur to the detriment of family goals, such as by generating a dysfunctional system, specifically in business family adaptability. Research limitations/implications: The principal limitation is that this single case study evidently does not allow for complete generalization of the findings. Practical implications: This case study makes a contribution to alerting the family business system to the long-term risk they face in trying to simultaneously maintain both harmony/cohesion and ethics/responsibility. Practitioners and consultants are therefore called on to help family firm owners with adopting a strategic vision by considering possible long-term counterfinal (i.e. mutually incompatible) goals. Social implications: SMEs are the most widespread type of firm in the world, and consequently dysfunctional behavioural patterns within business families represent a prominent socio-economical problem for policy makers and institutions. Originality/value: This study shows that, in the long term, that which is perceived to be a desirable goal can transpire to be a dysfunctional pattern. In doing so, this research introduces a new point of view to the literature on goal systems in family business.