Towards a better understanding of Family Business Groups and their key dimensions

The purpose of this study is to introduce an analytical framework aimed at critically assessing the governance associated with inter-organisational relations in a Family Business Group (FBG). In this study, we focus on the FBG's distinctive dimensions of analysis, namely, their nature, type, intensity and persistence over time. By coupling the literature on family firms and business groups with a family embeddedness perspective, and by relying on an in-depth exploratory case-study based on a well established FBG in the fashion industry (which consists of a focal firm and 33 subsidiaries), we empirically assess the relevance of these four dimensions. The preliminary findings indicate that not only do the relational structure (shareholdings) and the relational texture (interlocking directorships) play a crucial role in the governance of an FBG, but the intensity and the persistence of this specific set of inter-organisational relations over time should also be considered among its key dimensions. The analytical and the methodological contributions of this study, the managerial implications stemming from its main findings and directions for future research are also addressed in the concluding section of the paper.

► A fuller understanding of family business groups requires an embeddedness perspective.
► Relational structure, relational texture, their intensity and persistence are relevant dimensions of analysis.
► Persistence is a valuable asset – a key dimension that plays a crucial role in FBGs governance.