The line between family and community can be blurred. Whether across countries or eras, the distinction between the core familial unit and a wider network is sometimes unclear. In cultures that revolve heavily around familism, the concepts are inextricably linked.

How important are family and loyalty across the world?

For example, ‘meitheal’ is a powerful societal concept originating in Ireland, whereby members of family-centred communities opted to share the burden of manual labour between households. This collective mentality was at its strongest in past centuries, when pockets of tight-knit villages peppered the rural landscape. The concept also encompassed the shared workload of family members themselves – as shown in the ‘Gaeilge’ (or Irish Gaelic) turn of phrase ‘Tá meitheal mac aige’. Translated literally, it means ‘he has a contingent of sons’, and, more figuratively, can be understood as ‘his family can act in the stead of his wider community’ regarding labour.

So distinct is the mentality of ‘meitheal’, it has survived many changes to Irish communities over time. The term has also been reinterpreted to fit the modern age – notably in relation to Ireland’s child and family agency. ‘Meitheal’ is now the name of a national practice model within ‘Tusla’, the state support service. In this context, the focus is to cultivate a ‘team around the child’.

A twin concept of ‘meitheal’ exists in Spain’s Asturias region – and, like Ireland, it’s also a land influenced by the Celts. ‘Andecha’ is the unpaid work undertaken willingly by neighbouring families in the region to help with one another’s agricultural duties. Like ‘meitheal’, reciprocation plays a key role. The idea of ‘community as family’ may be less common nowadays – yet the idea of ‘family as community’ remains. As globalism grows and geographically defined communities diminish, the concept of family still boasts a strong emotional influence on the human psyche.

Help or hindrance? The psychology of family ties

Family is considered the smallest form of community, and, like most groups, the criteria for acceptance include a shared space – either physical or symbolic – and trust that members will follow an implicit code of values. Regardless of changing boundaries, the psychology of family ties is still significant, not only in one’s personal life but also in the context of business.

Just as family values are defining elements of our personal lives, they can also survive for centuries within family-owned businesses. Julius Baer, for example, was passed down for generations, remaining aligned with the Baer family values – one of which is preserving and respecting long-term relationships – before evolving into the current publicly listed company. Considering the traditional difficulty that family businesses have in surviving multiple generations, for one to last a hundred years or more is remarkable – but in Japan, one family-owned firm defied expectations from the very beginning.

Kongō Gumi, up until the start of this millennium, prevailed as the world’s oldest family business in operation. Despite being sold in 2006 as a subsidiary of another company, the Japanese temple-building firm had enjoyed fascinating longevity – having been founded in the year 578. Part of Kongō Gumi’s incredible history is owed to how its work was viewed as a vocation. The other is arguably due to its consideration for atypical successors.

Contradicting traditions, Kongō Gumi did not stick to a rigid rule of first-born sons as default leaders. Not only did the firm choose younger sons if they were better-suited heirs, but it also allowed women in the family to take charge – uncommon at the time. Kongō Gumi combined these habits with the Japanese tradition of allowing sons-in-law to take their bride’s surname – enabling them to take over if required and ensuring offspring would carry the family name.

It’s clear that family history can play a crucial role in a company’s continued success. When family values are instilled in a company and its successive leaders, this can bolster its strength. But it isn’t always the case.

How can a leader’s judgment be clouded?

Entrepreneurs, business moguls, or creators of large fortunes often share a common trait – a well-developed talent for strategic thinking. However, this skill can falter in the face of innate familial urges. Passing on traditions and possessions is usual for both communities and families, whether they are successful dynasties or not. There is an inherent desire to protect one’s family line, creating a future-proof legacy.

But what extra pressures can this create? Like the concepts of ‘meitheal’ and ‘andecha’, helping those closest to you can be seen as transactional. One offers help with the assumption that the favour will be returned. Within the close quarters of family life, the transactional nature of community cannot be ignored. Often in family businesses, adult children are familiar with the skills needed to do well in business. Whether inherited or through exposure, the next generation can be primed for succession. But through their acts of service on a professional and personal level, should they automatically be trusted to lead the business?

Census statistics in the USA, for example, reveal that 90 per cent of businesses are family-owned. This isn’t too surprising – people generally want to keep success in the family, adding an extra layer of meaning to vindicate decades of hard work. However, research finds that just one in three family businesses survives past the second generation of family control. Is there an added psychological burden for business owners when familial succession is on the table?

In order to have reached a point where that decision is necessary, a knack for professional objectivity must play a part. And yet, sentimentality and human nature can have an impact on even the strongest of wills. In matters of succession, the impact of betrayal, whether real or perceived, within a community as intense as the family is not to be underestimated. A fear of breaking one’s social (let alone professional) contract exists, yet there are some people who simply cannot or should not run a business empire, regardless of heritage. Is this enough for the shrewdest among us to ignore good corporate practices?

What’s the path forward? Clear planning and alignment

With the cloud of human instinct pushing us to protect our natural legacy, traditional succession cannot always be trusted and unchallenged. So how can wealth, businesses, and control be fairly – and intelligently – passed on without disrupting the harmony of the family community? Experts point to clear transition plans and objectivity alongside ongoing family alignment, be it through non-traditional family succession or even enlisting leadership from outside the family, as prudent methods.

This brings us full circle – back to shared values. As Kongō Gumi’s longevity shows, if a family’s values are entrenched in the business, solid enough to stay relevant, and agile enough to adapt, then legacies can live on regardless of the traditional ‘first-born’ – or any descendant at all – taking the lead. Legacy is a heavy burden to bear; it encapsulates our duty to family, and our sense of community in the most intimate confines of all – our home. The desire for continuity is natural, but this desire must be treated like any other – with rationale, control, and foresight.

This article was originally published as part of our award-winning Vision magazine, available for download below.