An examination of the relationship building process between the owner and the nonfamily CEO

Abstract

Although family firm scholars have acknowledged the importance of nonfamily CEOs for the growth and survival of family firms, we still possess only a limited understanding of the dynamics surrounding these CEOs (Blumentritt et al., 2007; Klein & Bell, 2007; Miller, Le Breton-Miller, Minichilli, Corbetta & Pittino, 2014). Anecdotal evidence strongly suggests the importance of the owner and nonfamily CEO engaging in a relationship building process conducive to joint learning. Drawing on relational constructionism (Bouwen & Hosking, 2000; Lambrechts, Grieten, Bouwen & Corthouts, 2009; Hosking, 2011), we argue that both protagonists are challenged to shape in-between them a learning relationship that allows the two of them to play their respective roles efficiently, build shared understanding, and move forward together. This study is dedicated to examining how the owner and the nonfamily CEO can develop and sustain a high quality relationship. Guided by the following overall research question: “Which mechanisms shape the relationship building process between the owner and the nonfamily CEO, and how?”, our study aims to deepen our understanding of the dynamics inherent in the succession by a nonfamily CEO.