Power in the Business Family

Power dynamics play a pivotal role in shaping governance, decision-making, and interpersonal relationships within family businesses, which operate as hybrid organizations at the intersection of family and business systems. This paper examines the unique manifestations of power in the business family, utilizing French and Raven’s taxonomy as a theoretical foundation and contextualizing power across the four governance dimensions: family, ownership, direction, and execution. We propose recommendations for an effective exercise of power in family firms in order to achieve the desired results in relation to the company, but at the same time preserving positive family outcomes. Finally, we highlight the importance to conduct specific research on power dynamics in family firms and propose avenues for future research.