A Leadership Perspective of Reciprocal Stewardship in Family Firms

Davis, Allen, and Hayes found that family members employed by the family firm reported significantly higher levels of perceived stewardship than nonfamily members. We extend their research by exploring how stewardship in family firms can be further expanded throughout the firm using the theoretical perspective of leader-member exchange (LMX) theory. Particularly in family firms, the leader's stewardship behaviors may establish a culture of stewardship throughout the firm. The resulting reciprocal stewardship behaviors of employees can be explained through LMX mechanisms. Propositions are offered to explore conditions where the family firm context provides a unique opportunity for creating a culture of reciprocal stewardship.