Explaining FBGs’ Influence and Actions via a Sensemaking Lens

Sanjay Goel (), Marita Rautiainen (), Tuuli Ikäheimonen () and Hikari Akizawa
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Sanjay Goel: University of North Dakota
Marita Rautiainen: LUT University
Tuuli Ikäheimonen: LUT University
Hikari Akizawa: Oikos Research GK

Chapter Chapter 19 in The Palgrave Handbook of Managing Family Business Groups, 2023, pp 497-516 from Springer

Abstract: Abstract We explore the process of the role of sensemaking in FBGs, especially in the context of constructing a logic for entrepreneurial action (going into new businesses) during times of environmental tumult and high uncertainty. We show the multiple layers of sensemaking embedded in an FBG. Individual family members have both legal ownership and moral claims over the FBG and they “sensemake” environmental events that contribute to sensemaking at the collective, family level. As the family business becomes an FBG with increased diversity of owners and non-family operatinve managers, additional perspectives are added. Finally, external environment provides secular events and other raw material, as well as other stakeholders that may have a voice in FBG’s sensemaking that constructs their world and a fitting narrative. We illustrate this perspective via three cases from three different countries—India, Japan, and Finland. We show that FBGs from different countries used sensemaking perspective to control, and even harness, epochal events in their environment to increase their reach and become “one” with the emerging mission or needs of the environment. This allowed them to increase their centrality and influence in their relevant environment, and also allowed them to increase internal cohesion. We hope that our perspective spawns several conversations and carefully crafted empirical studies to advance knowledge around these topics.

Keywords: Sensemaking; Narrative construction; Entrepreneurial action; External environment (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-13206-3_19

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DOI: 10.1007/978-3-031-13206-3_19

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