Theories and Models in Family Enterprise Advising

Intellectual Terrain

Patricia Annino
Rimon Law

Judy Green
Family Firm Institute Inc; Green Associates LLC

n the late 1980s, the introduction of the family enterprise as a field separate from entrepreneurship marked a change in the way multi-generational family enterprises were looked at, from both science and social science perspectives. Since then, a field of practice and/or professional discipline for advisers and consultants has evolved in parallel with increased understanding and research on the family enterprises themselves.

This new profession has identified, developed and espoused certain theories, models and terminologies to further articulate the skills and knowledge that professionals from related disciplines (e.g., law, finance and behavioural and management science) should be aware of and conversant in, before they step out of or add to their profession of origin and engage with multi-generational family enterprise clients.

This chapter is intended both as a self-assessment tool and as a roadmap for ongoing education in the family enterprise advising field for those professionals who find themselves advising multi-generational family-owned companies or wish to extend their practices to family enterprise business – entities that generate somewhere between 50%–90% of the world’s economy.¹

The chapter² is divided into four sections:

Foundational theories and models identifies concepts that are basic knowledge for professionals working in the family enterprise field.
Other theories and models identifies theories and models that more seasoned advisers should be aware of and consider using when advising their clients.
Emerging theories and concepts includes newer theories that contribute to the understanding and the education of advisers currently practising in the family enterprise field.
A concluding section brings the chapter together.

Read the full chapter here. Reprinted with permission.

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