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Family Business: Stewardship
In the family business literature, stewardship theory is a central framework that is drawn upon to explain how a family can act as a resource to their family business. With its roots in sociology and psychology, stewardship theory views organizational members as collectivists, collaborative and trustworthy. Stewardship theory draws from the tenets of Douglas McGregor's classic Theory Y, which views organizational members as intrinsically motivated, pro-organizational, cooperative, and responsible. Regarding family businesses in particular, stewardship theory focuses on how the family contributes to family business performance, highlighting the psychological ownership and shared sense of responsibility the family feels for the business. Positive family relationships are seen as a unique resource to family firms, because they engender loyalty, shared identity, and a commitment to the success ...
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