Family businesses have been the backbone of India’s economic development for a very long time. From large conglomerates to millions of micro, small, and medium enterprises, family-owned firms dominate India’s landscape. These enterprises are distinguished by strong values, and deep community ties. But it is seen that despite their strengths, Indian family businesses face challenges related to leadership transition, governance, and conflicts.
Two factors emerge as decisive in addressing these challenges: Effective leadership and the adoption of a Family constitution. Increasingly, leading business schools are playing a critical role in equipping family business leaders with the frameworks and skills required in this regard.
Leadership in Indian family businesses is designed by cultural norms such as respect for hierarchy, emotional attachment to legacy, and informal decision-making. While these characteristics bring loyalty and stability, they can also create ambiguity in authority, resistance to professional management, and unresolved family conflicts. Leadership in this context is not merely about directing business strategy; it involves managing relationships, aligning multiple generations, and ensuring that personal dynamics do not undermine organizational performance.
Closely linked to leadership effectiveness is the concept of the family constitution-a formal document that outlines shared values, governance principles, role definitions, succession processes, and conflict-resolution mechanisms. In India, where family and business boundaries are often blurred, the absence of a family constitution frequently leads to disputes over ownership, control etc. A well-crafted family constitution provides clarity and continuity, enabling leaders to make objective decisions while preserving family harmony. It transforms leadership from personality-driven authority to institution-based governance, which is essential for long-term sustainability.
However, designing and implementing a family constitution requires structured thinking, legal awareness, and a deep understanding of family systems. This is where business schools with a focus on family enterprises play a vital role. MYRA School of Business has emerged as a leading authority in teaching management and family business leadership through its dedicated academic programs.
MYRA School of Business integrates family business studies into mainstream management education. The initiative recognizes that leadership in family firms must be examined through understanding business strategy and family dynamics. For Indian family businesses-many of which are in the midst of generational transition-this structured academic approach offers valuable guidance.
What distinguishes MYRA School of Business is its emphasis on experiential learning and reflective practice. In addition to curriculum-based learning, the business school conducts family business workshops, symposiums, and faculty-led discussions that bring together Pan India family business leaders . These workshops provide a neutral and confidential environment where participants can discuss sensitive issues such as succession disputes, sibling partnerships, and ownership alignment. For Indian family business leaders, who often hesitate to formalize family matters, such workshops play a transformative role by normalizing governance conversations and demonstrating the tangible benefits of family constitutions.
It is seen that the sustainability of Indian family businesses depends on the quality of leadership and the presence of structured governance mechanisms such as a family constitution. Leadership that is emotionally intelligent, forward-looking, and institutionally grounded can prevent conflicts and ensure continuity across generations. Business schools that integrate family business studies into their management curriculum-such as MYRA School of Business-play a decisive role in developing such leadership.
Authored by:
Dr. Sampath Dorairajan
Faculty & Thought Leader in Family Business and Leadership
MYRA School of Business
