Gender Differences in Family Business Tensions
Jeremy A. Woods1, Gloria L. Sweida2, & Sharon M. Danes3
1. Doctoral Student, Department of Management, College of Business, University of Cincinnati
2. Doctoral Student, School of Behavioral & Organizational Sciences, Claremont Graduate University
3. 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 cause increased tensions
for family business actors experiencing this
incongruence (Pleck, 1977; Turner, 1978) – more
so for women 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:
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.
Methods
Discussion & Implications
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.
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.
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.
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 Support Variable & Statistics
1
Supported
A. Female business managers reported lower levels of tension regarding confusion over who does what in the business (t = 5.017, P
< 0.001, point bi-serial correlation = -0.149).
B. Female business managers reported lower levels of tension regarding who has authority to make decisions in the business (t =
2.471, P < 0.014, point bi-serial correlation = -0.080).
2
Supported
C. Female business managers reported lower levels of tension over failure to resolve business conflicts (t = 3.210, P < 0.001, point biserial correlation = -0.105).
3
Supported
D. Female business managers reported lower levels of tension over unequal ownership of the business by family members (t = 3.285,
P < 0.001, point bi-serial correlation = -0.098).
E. Female business managers reported lower levels of tension over unfair compensation for family members in the business(t = 3.209,
P < 0.001, point bi-serial correlation = -0.098.)