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We will now analyze the functionality of a business-driven family company from a conceptual point of view and we will include an analysis of the fundamental difference between a business-driven family company and a family-driven company.
In a family-driven company the family game rules apply. That is, the roles in the company replicate the family roles. These companies have the big advantage in that they do not generate conflicts between the family roles and economic activity.
On the other hand they have a weakness in that they generate a contraction of the company as the roles that the company does not cover and the family does, the affective protection and the social insertion, generate compensating activities in the company that lead it to lose market orientation.
In the business-driven family company the company game rules apply. The roles are those of any company and the family is only an owner or a shareholder of the company. The company’s activities take place in the same way as they would in an anonymous corpora-tion.
The advantage is that the company’s activity, as an intermediary between the customer and the owner of the capital takes place naturally. The stress felt by the individuals in the company to conciliate a cus-tomer’s interests with those of the shareholders is prevalent and gen-erates an expansive attitude towards the market. They have a disadvantage in that they generate family conflicts, as in the end conflicts of interest occur without the compensation of social and affective relationships.
The clash between business-driven family companies and family-driven companies leads to a lot of mixed companies. Mixed companies are those that take on both concepts of a company. These mixed companies require a logical sense of integration to function.
It is frequent to find these mixed companies among those set up by different families and those set up by the second or third generation to manage business-driven family companies.
The mixed company has the advantage of resolving family problems but has the cost of generating, in general, problems in the functioning of the company.
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