Limits to psychological ownership in the family business
Journal of Family Business Management
ISSN: 2043-6238
Article publication date: 11 June 2018
Issue publication date: 20 June 2018
Abstract
Purpose
The purpose of this paper is to analyze how the sense of control, psychological ownership and motivation of both family owners and non-family managers in family firms are interrelated. This paper analyzes the limits set by family owners when delegating control to their non-family managers and the resulting potential for conflict and demotivation of the non-family managers.
Design/methodology/approach
Building on the existing literature, first, an overview of the literature on psychological ownership and control is presented. Second, the paper analyzes the insights gained from interviews with 15 family owners and non-family managers in five family firms.
Findings
This study finds that motivating non-family managers is not merely a matter of promoting a sense of psychological ownership throughout the company. A strong sense of psychological ownership may facilitate but also hinder the cooperation between family and non-family. Family owners are often only willing to delegate operational control, while non-family managers also feel entitled to participate in strategic decision making. This leads to the proposition that non-family managers’ psychological ownership in family firms’ conflicts with family owners’ desire to maintain control.
Originality/value
This study answers the calls to seek additional insight in how non-family managers function within family firms. By shedding light on the complex relationship between control, psychological ownership and motivation in family firms, the study responds to the calls for more empirical validation of the psychological ownership framework and for more research into the potential negative effects of psychological ownership in the family business.
Keywords
Citation
Broekaert, W., Henssen, B., Lambrecht, J., Debackere, K. and Andries, P. (2018), "Limits to psychological ownership in the family business", Journal of Family Business Management, Vol. 8 No. 2, pp. 196-216. https://doi.org/10.1108/JFBM-12-2017-0042
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited