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Gender Differences in Family Business Tensions

Jeremy A. Woods 1 , Gloria L. Sweida 2 , & Sharon M. Danes 3.

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Gender Differences in Family Business Tensions

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  1. Jeremy A. Woods1, Gloria L. Sweida2, & Sharon M. Danes3 Doctoral Student, Department of Management, College of Business, University of Cincinnati2. Doctoral Student, School of Behavioral & Organizational Sciences, Claremont Graduate University3. Professor and Family Economist, Family Social Science Department, University of Minnesota Overview Differences in perceptions and management behaviors in family businesses based on gender differences are topics which are garnering increasing interest from family business scholars (Danes, Stafford, & Loy, 2007; Haberman & Danes, 2007; Zahra & Sharma, 2004). Both male and female family members are often integrally involved in the management and operation of both the business and the family systems which overlap to form a family business (McCollom, 1990). While both male and female family members may be called on to fill the same type of role (CEO, head of household) in different situations, there are gendered differences in perceptions and behaviors for men and women in the same type of role (Pleck, 1977). Despite the fact that such differences are known to result in different outcomes (Coser & Rokoff, 1971; Francoeur, Labelle, & Sinclair-Desgagne, 2008), there are still many aspects of gendered differences in perceptions and behaviors which remain relatively unexplored by family business researchers. This paper adds to empirical understanding of these outcome differences. Hypotheses 1 & 2 Role theory predicts that incongruence in family and business roles will causeincreased tensions for family business actors experiencing this incongruence (Pleck, 1977; Turner, 1978) – more so forwomen than men (Coser & Rokoff, 1971). Scholars have found, however, that collaborative leadership styles lead to lower levels of tension in family businesses (Kellermanns & Eddleston, 2004). Such leadership styles have been theoretically associated with female leaders (Allen & Langowitz, 1992; Avolio, Gardner, Walumbwa, Luthans, & May, 2004). Female leaders have also been found to encourage continuity in family businesses (Jimenez, 2009). Thus we submit: Methods This paper utilized data from the National Family Business Survey (NFBS) wave 1 (1997) data set. The data set surveyed family business managers across North America regarding a number of topics, including child care, household management and functioning, strategies for responding to conflicting business and family demands, family income and assets, business and family goals, tensions about the family business, outcomes and satisfactions, business managerial activities, as well as general and demographic information about the household and the business. We utilized the gender of the family business manager in this data set as an independent variable and performed independent sample t-tests on the explanatory power of this variable in predicting the tension which these family business managers felt (5-point Likert scale options from low levels of tension to high levels of tension) regarding the following topics: A) confusion over who does what in business; B) confusion over who has authority to make decisions; C) failure to resolve business conflicts; D) unequal ownership of the business by family members; and E) unfair compensation for family members. Results are summarized below.   Discussion & Implications The results reported below indicate that further research into differences in perceptions and business management behaviors in family businesses based on gender differences is likely to add significant explanatory power to family business scholarship. In particular, we feel that further investigation of differences in perceptions of tensions, roles, and goals, as well as in business management practices such as use of capital sources, labor utilization, supplier relations, and use of outside advice, based on whether a family business has a male or female CEO, a male or female head of the family, and male vs. female children and relatives involved in key management positions (COO, CFO, VP of Marketing/Sales, etc.) could yield valuable new insights for both scholars and practitioners. We also feel that the extent to which spousal advice may be a factor in the attitudes and behaviors of both male and female heads of family businesses is a topic worthy of further study. We look forward to pursuing this research. Hypothesis 1: Family businesses run by female managers will experience less tension based on roles than those run by male managers. Hypothesis 2: Family businesses run by female managers will experience less tension over conflict resolution than those run by male managers. Hypothesis 3 High wages and prestige are often associated with masculine images (Cejka & Eagly, 1999). Compensation, promotion, and ownership distribution in family businesses have been found to be heavily influenced by the dominant family coalition (Chrisman, Chua, & Zahra, 2003), and these dominant family coalitions are often heavily influenced by the founder or family business CEO (Feltham, Feltham, & Barnett, 2005, 2005; Kelly, Athanassiou, & Crittenden, 2000). Since high wages and prestige are more associated with masculine than feminine images and stereotypes, we submit: Hypothesis 3: Family businesses run by female managers will experience less tension over compensation than those run by male managers.

    Gender Differences in Family Business Tensions

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