“Sweeten the (i)-deal”: unveiling power and influence dynamics in family small and medium-sized enterprises

Abstract

Purpose

Family small and medium-sized enterprises (SMEs) represent a substantial part of many economies. In these organizations, close and informal relationships between employers and employees often foster a mutual understanding of each other’s needs, facilitating the negotiation of idiosyncratic deals (i-deals), special employment conditions tailored for individual employees. However, research on how i-deals are negotiated in family SMEs, especially regarding power dynamics and influence, remains limited. This study aims to identify the types of i-deals negotiated in family SMEs and explore the role of power and influence in these negotiations.

Design/methodology/approach

Semi-structured interviews were conducted with 45 employees and 15 employers from Spanish family SMEs. Data were analyzed using ATLAS.ti 8, and thematic analysis was performed.

Findings

The study concludes that task, flexibility, financial and development i-deals are particularly negotiated in family SMEs. It identifies that referent and expert power play an important role in initiating these negotiations. Furthermore, rational tactics are generally employed for negotiating work performance, soft tactics for employment-related aspects and hard tactics for work flexibility. Additionally, the study identified gender differences in the negotiation of i-deals.

Research limitations/implications

This study enhances i-deal literature by highlighting the distinct characteristics of family SMEs and their impact on i-deal negotiations. The findings suggest that power dynamics and influence tactics in family SMEs differ from those in larger firms. Moreover, certain i-deals may encounter resistance due to concerns about organizational performance and economic implications. Understanding these factors is essential for developing effective negotiation strategies in family SMEs.

Originality/value

This study offers a dual perspective, analyzing the power and influence tactics used by both employees and employers in family SME i-deal negotiations and highlighting gendered dynamics in these processes.

Citation

Renedo, S., Martínez-Corts, I., Di Marco, D. and Medina, F.J. (2024), "“Sweeten the (i)-deal”: unveiling power and influence dynamics in family small and medium-sized enterprises", Journal of Family Business Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFBM-06-2024-0127