Women in Family Firms

A study by Thomas Schmidheiny Centre for Family Enterprise has found that while research on women in family businesses has increased, critical gaps remain.

Family businesses have historically favoured male heirs and primogeniture, a system of inheritance where the firstborn child inherits the parents’ wealth. However, in the past few years, the recognition of women in family businesses has gradually become more “central, substantive, and important.”

A study by ISB faculty Sougata Ray, along with co-authors Nupur Pavan Bang and Satish Kumar, argues that because family businesses operate as social units, they often reflect societal gender biases. As a result, family firms are particularly susceptible to gender-related challenges.

While most research focuses on the financial impact of women’s involvement in family businesses, there is limited understanding of the social and cultural dimensions of their participation. To address this gap, the researchers conducted a bibliometric review—a data-driven analysis of trends across a large body of literature—to map the unexplored areas in the field. Their study identifies seven key themes that serve as avenues for future studies on women in family businesses:

1. The need for sociological and psychological perspectives: Given that familial forces are rooted in broader social roles, the study suggests that it is essential to incorporate a sociological and psychological framework into management studies. However, this interdisciplinary approach remains largely absent, leaving critical gaps in understanding the challenges women face in these firms. As the concept of family evolves in response to social changes, scholars must expand their theoretical palate to reflect this shift.
2. The underrepresentation of the LGBTQ+ community: The literature on sexual orientation within family businesses is scarce, despite families being central to socialisation and shaping how sexuality is understood and expressed. The study suggests that conversations about sexual orientation in family businesses—both in practice and research—need more attention.
3. The influence of cultural context: Women’s societal position is defined by tacit cultural rules that change across societies. A one-size-fits-all model is inadequate when discussing the inhibitors and facilitators for women in family businesses. Researchers underline that every geography must be studied through its unique cultural lens. Future scholars must focus on the prevalent factors in the geographies they are studying to have a stronger backdrop and conclusion to their research.
4. Examination across sectors: While some studies indicate that family firms provide a way for women to enter male-dominated industries, others have found that challenges exist even in female-dominated sectors. The study finds that sector-specific differences, expectations, and perceptions regarding women’s roles in different industries must be studied in detail.
5. The triple bottom line: While research has mostly focused on how women in leadership affect a firm's financial performance, other factors like global expansion, efficiency, and long-term growth are missing. This study suggests the need to examine how women's leadership styles influence the triple bottom line—a measure of success based on people (social impact), planet (environmental responsibility), and profit (financial performance). Understanding how these factors contribute to differences in management practices and outcomes at both the firm and societal levels is important.
6. Conflict of succession: The potential conflicts arising from daughters positioning themselves as successors within their families need to be studied. As societal norms evolve, understanding how these conflicts impact both firm performance and women's psyche is crucial. Research should also focus on conflict resolution strategies that women employ in these difficult situations.
7. Looking beyond financial metrics: The impact of women in upper management is often measured by financial success, with some attention given to corporate social responsibility (CSR) and governance. However, their influence extends far beyond these metrics. There is significant potential to explore other outcomes, such as shifts in culture, innovation, R&D, longevity, reputation, and internalisation. Researchers state that analysing how women leaders influence overall female participation and workplace conditions will make an interesting study. Such research could underline the role of family businesses in advancing Sustainable Development Goal 5 (SDG5) on gender equality.

The gap in research on women in family businesses is vast, including elements of identity, culture, geography, and social psychology. This study offers a roadmap for future scholarship, urging researchers to focus on narrowing these thematic gaps. Their recommendations align with global efforts to increase gender diversity within organisations, calling for deeper, more targeted investigations into this critical area.

Author: ISB Editorial Team