F-CPO: A collective psychological ownership approach to capturing realized family influence on business

Family business is a growing field of research focused on investigating organizations that result from a fusion of family and business systems. Although it is central to the field, there is lack of theoretical clarity on the nature of this fusion beyond the social systems approach. The interaction between the family and the business is seen as a promising unit of analysis. The F-PEC scale has made important contributions in this area by providing a standardized instrument for the purpose of measuring family influence. However, in our view, the F-PEC is most suitable for measuring potential, as opposed to realized or actual, family influence. We introduce collective psychological ownership of family over business (F-CPO) as a construct that comprehensively captures the fusion between family and business and reflects the realized family influence on and in interaction with the business. We examine the routes leading to F-CPO, explore its linkages with the F-PEC scale, and discuss opportunities for advancing measurement and theory in family business research.

► F-CPO construct helps us capture realized as opposed to potential family influence and, thus, overcome shortcomings of F-PEC scale.
► F-CPO construct provides additional conceptual clarity to the fusion between family as a social system and business as a social and physical entity.
► Some of the motives for F-CPO motivations provide more comprehensive explanation to non-economic goals in family business.
► F-CPO is a viable starting point for advancement in measurement, particularly concerning family influence.
► F-CPO is a viable starting point for theory elaboration, particularly on the purpose of family firms and the family behavior that leads to competitive advantages and disadvantages.