A model of interaction in the intergenerational family business

American business is family business. Ranging from the corner market to the large corporation, there is a long and rich tradition of family ownership and involvement in business. Despite the prominence of family businesses, their longevity across generations is tenuous and most barely outlive the tenure of the founder. While some fail due to economic conditions, many succumb because of the stress and strain created by combining family and firm. This thesis extends a model (Ballard-Reisch & Weigel, 1991) which blends the family and work spheres into an exchange-based model of interaction in intergenerational family businesses. The model captures the dynamic, interactional nature of the family business with a four stage sequential model: external and internal factors, interaction, outcomes of interaction, and social exchange driven system maintenance/change feedback loops. The model has implications for researchers and practitioners working with intergenerational family businesses.