Examining employment relationship activities in family business research

Abstract

PurposeThe purpose of this paper is to examine the family business literature on human resource management (HRM) activities within family-owned businesses to advance theory and practice.Design/methodology/approachThis paper is a review of research on the formation, adaptation, and termination of the employment relationship within family businesses.FindingsImportant areas for future research are revealed. For example, little research investigates how family members are recruited, socialized, or how exit decisions are made. In contrast, significant attention has been given to role transitions during succession.Research limitations/implicationsThe paper focuses on managing employment relationships (e.g. recruitment, selection, etc.) within family businesses. The research revealed HRM activities within family businesses are often informal so aspects of the employment relationship may not be fully captured by extant research.Practical implicationsThis review provides specific HRM suggestions for practitioners to consider. For example, this review highlights that training inside the family business can be as effective as training outside the family business.Originality/valueThis review is novel in applying an established HRM framework to family business research and focuses on HRM activities of family members as opposed to non-family employees. The paper offers considerations for families bringing next generation members into their businesses and preparing offspring to run them successfully.