Angela Pike-Bowles *
Department of Applied Management, Administration and Ethical Leadership, University of Fort Hare, South Africa.
Juliet Townes
Department of Applied Management, Administration and Ethical Leadership, University of Fort Hare, South Africa.
In this post, we present a brief overview of our recently published book chapter titled “A Qualitative Exploration of Risk Management Strategies in Family Businesses”
Family business performance is a highly complex process with various phases shaped by factors such as the size and sector of the business. Family dynamics—including the degree of harmony, the number of siblings, and the age of family members—also play a significant role. The organisation’s culture influences decision-making processes in family businesses, particularly the extent to which emotional and spiritual considerations are prioritised over purely intellectual reasoning. In addition, family businesses require dynamic capabilities to adapt effectively to changes in an increasingly competitive and evolving business environment.
Sustainability has become a well-established theme in family business literature over recent decades. In this context, sustainability enables future generations to continue meeting the needs of the business. Investment in sustainable practices contributes significantly to a family business’s long-term success and continuity. However, many family businesses do not sufficiently invest in sustainability initiatives, which may expose them to additional risks. Ineffective management of business risks by family members can have long-term consequences for both the survival of the business across generations and its growth prospects.
Family dynamics represent one of the key risks faced by family businesses. Unresolved emotions—particularly within family systems—can distort risk perception and delay critical decision-making. Furthermore, unresolved interpersonal tensions within the family may act as hidden stressors, undermining fairness and transparency in processes and reducing overall governance effectiveness.