Dark side of the family business: an exploratory perspective

Abstract

Purpose The paper aims to relate the potential elements identified as the dark side of the family business (DSFB), where these elements can be productive or destructive. The “dark side” comprises an important contribution for entrepreneurship and family business (FB) studies, a novel perspective.

Design/methodology/approach The relevant literature on entrepreneurship and FB was selected and analyzed according to the “dark side” framework.

Findings The results suggest that many perspectives remain for research, starting with a clarification and a more precise definition, not only of the construct itself but also of the factors or forces that drive this dark side, from the entrepreneur/founder, the FB itself and the context. This approach considers a systemic position in which the context plays a significant and decisive role.

Practical implications The paper has implications for the development of public policies. Business incubation entities, federal, state and local entrepreneurship/small- and medium-sized enterprise (SME) programs, educational institutions and entrepreneurial families and their founders can become more aware and establish courses of action.

Originality/value This paper makes a call to propose an initial point for conceptualizing the logic behind the DSFB for obtaining a deeper understanding with regard to future research. Researchers are encouraged to test the conceptual model further.