Abstract
The purpose of this chapter is to provide a systemic view of large business families. In particular, we offer a useful perspective on the specific challenges confronting this type of family business (business family 3.0). We distinguish between three types of business family, including nuclear business families (business family 1.0) and more formally organized business families (business family 2.0). Both these business family types must manage the contradicting logics of the family and the organization. Because business family 3.0 often comprises several hundred shareholders who own multiple business entities, it must address additional challenges. Our findings suggest that for such families to perform effectively they must establish both formal and informal networks among often distantly related shareholders who share only weak links. The leaders of business families 3.0 must initiate, shape, and maintain such social networks; accordingly, families of this type require additional and extended theoretical perspectives regarding family businesses. Drawing on prior work in sociology, we introduce a systems theory of large-scale business families to highlight the characteristics, particularities, and challenges in this type of extended business family.
