Family protocols as governance tools: Understanding why and how family protocols are important in family firms

Abstract

Purpose

The purpose of this paper is to focus on the family protocol as a governance policy tool that can help ameliorate intra-family conflict and enhance the probabilities of survivability of the family business.

Design/methodology/approach

Using equity theory and organizational justice as theoretical frameworks, the authors explain how and why the development of a protocol can help the family firm and their survivability. The authors combine academic and practitioner knowledge to present a process model for creating family protocols.

Findings

Based on four important considerations (i.e. process view, deep knowledge about the family business, dynamic environment, and the need for change and adaptation) the authors develop a process model for the development of family tailored protocols.

Originality/value

This paper integrates the work of practitioners and academics to help understand what is a family protocol, why and how the protocol affects the family and business relationships and presents a procedural model for the development of a family protocol that can help govern the relationship between the family and the business.

Citation

Botero, I.C., Gomez Betancourt, G., Betancourt Ramirez, J.B. and Lopez Vergara, M.P. (2015), "Family protocols as governance tools: Understanding why and how family protocols are important in family firms", Journal of Family Business Management, Vol. 5 No. 2, pp. 218-237. https://doi.org/10.1108/JFBM-01-2015-0001