Antecedents of Dysfunction and Deviance in the Family Firm

The various causes of deviance and dysfunction usually start with interactions that occurred between individuals, the family, and the family firm and lead to diverse outcomes in different family firms. After discussing theoretical perspectives such as social exchange theory and psychological contract violations, this chapter considers the impact of a perpetrator’s personality traits, particularly elements of the Dark Triad, on dysfunctional behavior. Then, the ambiguity of conflict’s relationship to deviance and dysfunction is discussed followed by applications of emotion, altruism, entitlement, and nepotism in the family firm context, which can serve as antecedents to deviance and dysfunction. The positive and negative effects of socioemotional wealth are also discussed. Family firm dysfunction is connected to elements of family science research such as parent–child relationships, parenting style, and sibling relationships. Finally, the influences of the external environment in terms of weak institutions and legal protections, prevalence of corruption, and other factors are linked to the potential for bribery, corruption, and other negative behaviors on the part of the family firm.