Abstract
The impact of divorce on the family business system in SMEs - patterns of coping strategies, commitment and ownership regulations
Highlights
A key characteristic of family business is the intertwined and reciprocal relationship between the family and the business they own, aiming for both a profitable business and family harmony (Sharma, 2004)
Thereafter, we further analyse these differences in relation to the legal contracts they had in place prior to the divorce and the financial repercussions related to these different legal solutions
Our findings contribute to the family business literature by illuminating the impact of divorce on the family business system
Summary
A key characteristic of family business is the intertwined and reciprocal relationship between the family and the business they own, aiming for both a profitable business and family harmony (Sharma, 2004). Such harmony is not easy to achieve – studies point toward different types of conflict typical for family firms, such as clashes deriving from the overlap between family and business cultures, (e.g., Harvey and Evans, 1994) or during transgenerational succession processes, (e.g., De Massis et al, 2008; Ramadani et al, 2017a, 2017b). The sustainability of any family business depends on its ability to respond and adapt to changes in either the family or the business component of the family business system when these changes occur (Olson et al, 2013)
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