Abstract
Differences between family and non-family firms are often attributed to the unique particularistic goals pursued by the controlling families. Nevertheless, little is known so far about the conditions under which organizational members form their individual goals and the processes through which they affect decision making in family firms. Using qualitative data from 76 organizational members across 19 family firms, we document how they have multiple and competing individual goals, how such goals relate to individual and firm-level characteristics, and how goal formation processes occur through mechanisms of interpersonal bargaining and stabilization. Theoretical and practical implications of our findings are discussed.