The Dynamics and Complexity of Family Business Groups

Abstract

We draw insights from the perspective of theory of complex adaptive systems to gain knowledge about complex interactions and the dynamic nature of entrepreneurial family business groups. We develop a theoretical understanding of complex longevity in entrepreneurial family firms through a detailed analysis of a multigenerational family business group. We propose that family business groups are the outcome of complex temporal dynamic interactions within and between family business subsystems: family, business and ownership. Our analysis shows that even complex systems may have a subtle balance inherent in the interaction of their subsystems. A family can control the complexity of a family business group by understanding and appropriately managing the complexity inherent as a family, as a business group and in ownership ties across the family and the businesses.