The System’s Theory Model of Family Business
Ownership
Non-Family, Non-Employee Owners
Non-Family Owner
Employees
Family Owners
Family
Family Owner
Employees
Business/
Management
Family
Employees
Family Members
Non-Family Employees
This diagram is referred to as the Three Circle Model by Tagiuri and Davis. This diagram illustrates the unique dynamics and proper
balance of family businesses. There are 7 unique interwoven and interdependent groups all with their own perspective, needs, and goals.
Source: Three-Circle Model developed by Renato Tagiuri and John A. Davis. Found in “Bivalent Attributes of the Family Firm.” 1982.
Family Business Alliance, Wilkes University 65 West South Street Wilkes-Barre, PA 18766 Phone 570.408.2120