ABSTRACT
In this chapter, the authors examine some of the theories and theoretical models that help us to understand family businesses and how they can be applied in practice. The Three-Circle Model is critiqued for providing only a snapshot, and so the three-dimensional development model is presented to capture some of the changes that occur in family business. The authors then look at tools and methods for analysing each of the family, ownership, and business dimensions, starting with how to construct a genogram and introducing some theories along the way that are explained. Andrew Van de Ven edited an issue of academy of management review dedicated to providing a better understanding of what makes a good theory. In a homage to Lewin, the editorial is titled ‘Nothing is quite so practical as a good theory’. The three-circle model provides the basis for a really useful exercise for any individual family business.
