Stakeholder Prioritization in Family Businesses: A Theoretical Essay
DOI:
10.14211/regepe.v9i3.1532Keywords:
Stakeholders, Stakeholders Salience, Family FirmsAbstract
Purpose: to identify the factors that influence the stakeholders management in family firms.
Methodology: a theoretical essay was developed based on the “stakeholder salience model”, which addresses prioritization criteria, and the “three circle model”, which presents the intersections between family, business, and ownership peculiar to family firms.
Findings: the results show the salience of three internal stakeholders groups in Family firms (founders, next generation members and non-family employees) based on the attributes of power, legitimacy and urgency, and considering the simultaneity of the stakeholder roles in Family business.
Theoretical contributions: the study contributes for stakeholder management and prioritization by considering similarities and differences between family and non-family businesses and including the “role simultaneity” as an important factor in this phenomenon.
Originality/Value: the inclusion of the “role simultaneity” attribute is relevant to the advancement of the “stakeholder theory” in the context of family businesses, because it offers greater scope and precision to the Salience Model and the study fosters the discussion on how to allocate organizational resources in the face of various stakeholders demands.
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