Social identity theory and the family business: A contribution to understanding family business dynamics

Abstract

The combination of the family unit and the business entity has been a major focus within family business research. While some research suggests that their combination is beneficial; other research indicates that it is detrimental – one of the main reasons being intra-family conflict. Due to its potential to account for inter- and intragroup conflict, social identity theory will be used to offer a lens from which to understand family business, at both the individual and organisational level. Using a single in-depth case study, the various dimensions of social identity theory will be applied to the family business context. The findings indicate that social identity can go some way in helping us better understand the dynamics of longstanding family businesses. Three dimensions that contribute to the development of a common identity among family members are proposed.

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