Critique Paper on Journal Article

By: Cyd Hieras, Kat Ilao, Ron Calairo

I. Summary of the Article

Title: Managing family business tensions: the narrative of family history
Authors: Rocio Arteaga and Timur Uman
Source: Baltic Journal of Management, Vol. 15 No. 5, 2020, pp. 669-686,
Emerald Publishing Limited

Problem Statement: What family governance structures does family firms employ
to effectively manage family business tensions?

Background: The purpose of the study was to contribute to the literature on the
management of family business tensions and to offer insights on the effective
family governance structures that family firms should employ to effectively
manage these tensions. To manage conflict in family businesses, family
members must consider and adopt various open communication mechanisms to
minimize the negative consequence of tensions and preserve the firm’s
socioemotional wealth or its non-financial goal.

Hypothesis: Family governance mechanism structures are used to manage

tensions in family firms and this is best achieved in a balance combination of
open communication mechanisms, both informal and formal meetings.

Research Design: A narrative methodological approach was used by conducting

formal conversations with the family members from family firms. No script was
used but a guide was followed in order to come up with a structured
conversation. The study was supported with unique narratives of the
representatives of the family firms and the researchers acted only as non-
directive listeners.

Sampling Method: A purposeful sampling strategy was employed. The study

engaged nine (9) family members from three (3) Swedish family firms from
different industry, the first one specializing in the extraction of natural resources;
the second business is engaged in the wholesale sports equipment company;
and the third business is engaged in the wholesale plastic cleaning products
company. The sample takes into consideration various factors such as the
founding dates of the companies, the number of generations in control of the
businesses. Family members who were selected consisted of three-/fourth-/fifth-
generation family business owner-managers, and three first-/second-generation
family owner-managers and three third-/fourth generation family business owner-
managers. Samples information were maintained confidential.
 Collection of data: The study took place with 3 Swedish family firms. Each
interview lasted for one to two hours. They were recorded and transcribed
verbatim into English.

Narrative analysis: The paradigmatic analysis was performed to examine and

study the narratives of the respondents. It looks for the similarities of the
statements in order to reveal the relationships of the data being analyzed. The
researchers performed the analysis in three (3) stages. The first one being the
explication stage in which the researchers look into the varied narratives of
different respondents for each sample. The second was the explanation stage in
which the researchers determine the distinct perspective that each narrator
conveyed and on how they structured their stories. The last stage was
exploration wherein the researchers looked into the intentions of the
respondents, or the turning point of the events which would enable the
researchers identify the hidden aspects of the narratives. Using the paradigmatic
analysis enabled the researchers identified three different tensions among family-
owners. The first was the desire of family-owners to perpetuate family dynasties.
The second was the desire of family-owners to maintain social ties and maintain
a positive relationship among them. The third was the desire of family-owners to
perpetuate positive image and reputation. Using such methodology in narrative
analysis, the researchers were able to conclude that family firms is challenged in
balancing and managing tensions in a so-called hybrid arena. Thus, the study
was able to offer insights in effectively mitigating and managing tensions in family
firms through formal and informal family governance mechanisms and its reliance
on the established family relational ties.

Author’s findings: The study showed that there are three different family business
tensions derived from the desire to preserve socioemotional wealth. These are
tensions related to 1. the family-owner’s desire to perpetuate the family dynasty,
2. to maintain social ties among family member, and 3. to perpetuate a positive
image and reputation. It concluded that managing tensions in family firms are
best managed in balancing informal and formal family meetings which is called
the hybrid arena in mitigating the tensions.

II. Critique
Title: The researchers effectively curated the article’s title and the abstract is
clear and simple. It clearly represents the purpose or objective of the study. It
permits its readers to put in mind the objective and the significance of the
study. It is very clear, direct and short. It is interesting since it stimulates the
interest of a readers especially those in a family-owned business.
Author/s: The paper shows the credential of the authors who are both PhD
which makes it a valid and reliable source.
 Methodology/ Study design: The researchers discussed the methodologies
that they employed; such were properly cited as they considered other
studies related to their objectives. The methodology of the researchers used
was properly and amply tackled which would enable its readers to duplicate
such techniques for purposes of future studies. The study design, its
methodologies, and its results were properly and sufficiently communicated in
the article, providing its readers a meaningful resource especially in study of
the factors that possibly affects the culture and relationships of not only the
family members but also the firms that they control.
Sampling: There is a risk that the samples size selected would not represent
most of the population of family-owned businesses due to its small size,
increasing the number of samples would better represent the tensions
experience by family owners. Future research may also be considered in
areas like Asia-Pacific and US since they are also among the top center of
family business growth in the world. Although the author mentioned towards
the end of the article that there is a limitation in the research conducted
especially on cultural context and suggested directions for future research.
Format: Since this study uses the narrative approach, the methodology part is
a bit lengthy. Some contents are repeated multiple times like the enumeration
of the informal and formal ways of meetings of family members in a family
firm. These ways can also be presented in a table format so that it can be use
as reference in the succeeding statements and not duplicating the same.
Practical implications: The article is useful and relevant and provides
opportunities for family business practitioners like owners, family members
and family firm advisers on how to effectively manage family business
tensions and foster socioemotional wealth. These may serve as a guide in
order to eliminate the possibility that these conflicts or tensions jeopardize the
operations of the business. It is a critical issue which can threaten not only the
processes of a business but also the succession strategies which may greatly
affect the achievement of the business goals.
III. Conclusion
Overall, the article is very informative and objective. The authors where able
to show how family governance structures affects in managing tension in
family firms.
The author is convincing when it suggested the use of a hybrid arena family
governance mechanism. However, it can also add other key tools and
methods that are essential to help resolve these tensions.
Lastly, the author can add that tensions or conflicts are not always bad as
stated in the article cited in his introduction, “Feuding Families: When Conflict
Does a Family Firm Good” by Franz Kellermanns and Kimberly Eddleston. It
may give birth to a change in the business if properly managed because it
allows people to learn and grow. In some cases, after conflicts or tensions are
resolved, stronger relationships may even be built or established. What is
important to the overall success of a business is knowing how to successfully
manage these tensions.