How moral and social values become embedded in family firms

Abstract

Research suggests that moral values are more prevalent in family than non-family firms. This paper offers a model and propositions that suggest how family values are clarified, reinforced, and socialized into firms. First, social capital within the family helps clarify and reinforce values. Then, families socialize the business in their values through multiple family members working in the business, the founder promoting family values in the firm, or multiple family owners agreeing on and promoting values in the business.

Keywords:

• values
• communication
• identity
• family capital
• trust