Given the growing recognition that family businesses play a significant role in the global economy, many studies have investigated leadership transitions, succession planning, and generational conflict. However, little is known about the challenges faced by nonfamily managers in family businesses. Therefore, this article aims to identify the barriers to leadership for nonfamily managers in large family-owned businesses.
Authors studied a family business based in Brazil and collected data from 20 nonfamily leaders within the organization. Authors applied the fuzzy Delphi method and the fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method, as it is a decision-making support tool commonly used to address complex problems.
After applying an innovative methodological approach, authors identified eight barriers to leadership in large family businesses: recruitment, financial management, turnover, team development, client prospecting, training adaptation, transportation, and leadership development. Overcoming these obstacles requires strategic solutions such as the implementation of career development plans, standardized management models, leadership development programs, and increased family involvement to ensure long-term stability and business success.
The findings of this study provide actionable insights for managers in large family businesses, offering practical solutions to address common leadership barriers. Fostering greater family involvement in leadership processes may help reduce turnover and strengthen the company's long-term strategic direction.
This article provides fresh insights into the challenges faced by nonfamily leaders in family businesses and explores how they can adjust their strategies to effectively overcome these key obstacles. Additionally, the research provides a comprehensive framework with solutions to these barriers, which may be valuable for managers of other large family businesses in emerging countries, in addition to enriching Agency Theory.
