cluster-modelTraditionally, family businesses are described as constituent of three overlapping circles:

1) the family,

2) the business, and

3) the ownership (Gersick, Davis, McCollom Hampton, & Lansberg, 1997; Tagiuri & Davis, 1996).

Recently, Michael-Tsabari, Labaki, & Zachary (2014) suggested the Cluster Model to update the two and three-circle models by providing a more detailed picture of the circles’ evolution over time.

While the original bivalent two-circle model appropriately describes a family that owns a firm (Tagiuri & Davis, 1996), Michael-Tsabari et al. (2014)’s study addresses the inaccuracies of the circle models when it comes to describing a family that owns more than one firm and suggests a more detailed perspective allowing to include in the analysis the different firms that the family owns to different extents.

Lesson #2: Putting on the lenses of the Cluster Model might help you better capture the evolution of your family business over time both in terms of the descendants driving this evolution and its outcomes.

Wondering what the Cluster Model means for you and your family business? Do you need some guidance on seeing your family business through this lens? Contact a Family Business Matters consultant today. Through conferences, continuing education programs, family business retreats, speaking engagements and private family business consulting services, Family Business Matters has assisted more than 450 family-owned businesses around the world chart their way through family business issues of all shapes and sizes.

This post is the second in a series by Rania Labaki highlighting the Top Ten Family Business Facts. To view the previous post in this series, follow this link. To review the full Top Ten Family Business Facts and to access a list of original resources, please visit our Family Business Facts page.

Rania Labaki — Author Bio

Rania LabakiRania Labaki has developed a unique mix of academic and practical knowledge throughout extensive experience with leading international organizations specializing in family business education, networking, advising and research.

Along with a Ph.D. in Management Sciences from the University of Bordeaux, Rania Labaki holds the Family Firm Institute’s (FFI) Certificates in Family Business and Family Wealth Advising.

Currently an Associate Professor of Management at EDHEC Business School, she teaches and conducts research at the intersection of the fields of finance, entrepreneurship and family business. She also serves as Academic Director of the Family Business Global Executive MBA and member of the Family Business Centre. Her recent research interests revolve around the relationship between the family’s emotional dynamics and the entrepreneurial and financial behavior of family businesses.

Prior to joining EDHEC Business School, Dr Labaki was Associate Professor of Management and Director of the Finance and Wealth Management Master Program at the University of Bordeaux in France. She was also Visiting Scholar at Baruch College — The City University of New York and at Zeppelin University in Germany.

As academic expert of Family Business Network (FBN) International, Rania Labaki served as Chair of the International Family Enterprise Research Academy Conference in 2012 and as Program Committee Chair for the Family Business Network — Next Generation International Summits since 2012. She contributes to the Next Generation Committee in terms of program content development and facilitation for the international conferences and support for the strategic activities focused on education, research, networking and entrepreneurial initiatives.

Rania Labaki is an active member of several organizations, including Family Business International Foundation (FBIF), Family Business Network France Scientific Board (FBN), Women in Family Business Advisory Committee and Family Business Review (FBR), Journal of Family Business Management (JFBM) and Journal of Family Business Strategy (JFBS) Editorial Review Boards.

Author of many academic papers, book chapters and professionally-oriented articles on family business, Rania Labaki currently serves as Co-Editor of Entrepreneurship Research Journal, positioned as the premier new research journal within the field of entrepreneurship; She was also a Guest Editor of the Entrepreneurship Research Journal for a special issue on The Emotional Dimension of Organizations in 2013; Academic Chair of The International Family Enterprise Research Academy (IFERA) 2012 Conference (France), and Program Committee Chair of Family Business International Next Generation (FBN-NxG) International Events 2012 (Germany), 2013 (USA), 2014 (Spain), 2015 (Colombia), 2016 (Sweden)

Her 13-year teaching experience spreads across continents as guest or visiting professor in universities in China, Bulgaria, Germany, Morocco, Tunisia, USA and Brazil, in the same line than her academic advising experience with organizations such as Family Business Network (FBN) in Switzerland, Pacific Asia, Germany, North America, Colombia, India, Spain, France and Business Families Foundation (BFF) in Canada.