Patterns in strategy formation in a family firm

Abstract

Despite the fact that about 90 percent of all the businesses in the US and Canada are family‐owned and operated, very little research has been undertaken on how strategy is shaped in family businesses. This paper tracks strategy in two family firms since their inception to their present third generation management, to investigate the unique factors influencing strategy in family businesses. The paper accentuates issues relating to the intensive grooming process and the involvement of the different family and non‐family members in the strategic decision making processes of the family business.