Families and Their Firms Behaving Badly: A Review of Dysfunctional Behavior in Family Businesses

Family business research across academic disciplines has increasingly considered the causes of “bad behavior” in family firms and its impact. A review of this literature is important because different emphases in different disciplines may obscure the nature of dysfunctional behaviors in family firms. After reviewing 160 studies from 64 journals, we propose family firm dysfunction is better understood by emphasizing the roles the family and the firm’s external environment play because negative behavior often traces to family interactions predating firm engagement and to external pressures. We also present research questions to guide future studies on family firm dysfunction across disciplines.