Unpacking Stigma in Family Business

Abstract

Family business research increasingly acknowledges non-economic dimensions. We introduce the psycho-social construct of stigma into this context, defining it as a power-laden process involving labelling, stereotyping, separation, status loss, and discrimination. While stigma has been widely examined in sociology and psychology, its relevance to family firms remains under theorised. Our study introduces stigma to family business literature by exploring how stigma emerges within family business settings and identifying critical contexts where it occurs. By integrating stigma into family business literature, we aim to heighten awareness of its interrelated elements and implications for strategy and well-being. This work reveals overlooked dynamics that shape family business decisions and addresses the social realities influencing family business sustainability while offering a foundation for future research on mitigating stigma’s adverse effects.