Gridlock that Family Firms Build for Themselves

Working Papers
Ramachandran, Kavil., Bhatnagar, Navneet.,Ray, Sougata. "Gridlock that Family Firms Build for Themselves"
Abstract:
One of the main reasons for family business failure is the inability to manage the challenges that arise from the growing complexities of the intertwined business and family systems. Though scholars have studied the challenges of growing business complexity, the effect of its interplay with the growing family complexity has not been adequately examined. Using multiple-case study method in the Indian family business context, this paper examines the interplay of the increasing complexity in both the systems. The paper finds that family businesses get trapped in a decision-making gridlock that they themselves create without being consciously aware about it. The paper identifies five stages of the decision-making gridlock and also suggests how family businesses can avoid the gridlock trap.