An Institutional Theory View of the Family Business

Abstract

This article discusses the organizational forces common to the family business from the perspective of institutional theory. Both “old” and “new” institutionalism add useful perspectives for the analysis of family businesses. “Old” institutionalism encourages the study of structural change as a result of environmental pressures. “New” institutionalism focuses on the symbolic nature of organizations. Propositions regarding elements of these theories of institutional theory in a family business context are offered. Parallels between institutional theory and family systems theory are discussed.

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