Abstract
In this commentary, I provide some extensions to the emotional nexus in cogent family business archetypes. Labaki, Michael-Tsabari, and Zachary (2013) argue that emotions bind the family and the business subsystem. Emotional cost and return as well as emotional dissonance have a major impact how family and business interact. From here, I provide some ideas showing how emotions can prevent those businesses from surviving to the third generation and beyond. Main effects are an increase of the probability of bankruptcy, sale by family members, and disappearance of the family due to negative ratio of emotional return and emotional cost, as well as high emotional dissonance.
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