Clarifying the strategic advantage of familiness: Unbundling its dimensions and highlighting its paradoxes

Abstract

Using a resource-based theoretical lens we clarify familiness by identifying the dimensions of this unique family business resource in multigenerational family firms. Using data from four in-depth case studies, we provide evidence that familiness is comprised of human resources (reputation and experience), organisational resources (decision-making and learning), and process resources (relationships and networks). Furthermore, we demonstrate how these resource dimensions are paradoxical in nature in that each influences the family firm in both positive and negative ways. These dimensions and their nature (positive/negative) thus not only help clarify a firm's familiness but also move the construct from a conceptual notion into a more operationalised form.April, 2010

Qualitative research practices and family business scholarship: A review and future research agenda

“…In addition, we also updated the search to include other articles published in 2010 with more than 10 total citations. This criterion yielded four additional articles (Fletcher, 2010;Irava & Moores, 2010;Nordqvist & Melin, 2010;Parada, Nordqvist, & Gimeno, 2010) creating a subsample of 24 qualitative family business articles for the period 1996 to 2010. Finally, two further qualitative articles were added that were published in 2013 and which received at least 10 citations in Google Scholar by November 2013 (De Massis, Frattini, Pizzurno, & Cassia, 2013;Kotlar & De Massis, 2013).…”

Networks in family business: a multi-rational approach

“…This distinction between family and non-family based businesses has been referred to in the literature as 'familieness', taken to mean the unique set of resources within a family business which arise as part of the interaction between the family, the individuals within the family and the business, of which networks are a factor (Irava and Moores 2010). Differences between family and non-family business networks contribute directly to the debate on the distinction between family and non-family businesses and hence to the development of current theories of family business.…”

Extending the concept of familiness to relational capability: A Belgian micro-brewery study

“…Essence, in addressing the assumption that that family involvement will translate into family influence that shapes the organisation, refers to activities between the family and the business systems. Activities and behaviours indicated by the unique processes, deployment and integration of resources and capabilities contributed to the business by the family in addition to the trans-generational vision that may preserve these values (Irava and Moores, 2010).…”

“…For those growing up in a family business, their 'world' is characterised by the interacting systems of the family and the business, the essence of 'familiness'. Family firms can reap reputational advantages, both in terms of brand recognition and the families' business reputation (Irava and Moores, 2010). For the entrepreneurial firm, family may not provide a steady pool of human capital including reputation, informal learning and mentoring.…”

“…Firm specific tacit knowledge and information in relation to technology, manufacturing, marketing and distribution (Fairlie and Robb, 2007;Hatak and Roessl, 2015;Irava and Moores, 2010;Lane and Lubatkin, 1998;Stewart, 2003;Stewart and Hitt, 2012) Access and exchange of resources, knowledge, and information in relation to technology, manufacturing, marketing and distribution from diverse horizontal and vertical networks (Aldrich and Zimmer, 1986;Dubini and Aldrich, 1991;Greve and Salaff, 2003;Lechner et al, 2006;Shaw, 2006;Zellweger et al, 2010) Human capital Reputation (brand and family identity and image), experience, informal learning, mentoring and labour (Colli, 2011;Irava and Moores, 2010;Sharma, 2008;Stewart, 2003;Stewart and Hitt, 2012) Family as a source of labour and initial feedback (Anderson et al, 2005;Greve and Salaff, 2003;Zellweger et al, 2010) Financial capital Patient family capital, physical assets, living expenses during start-up (Danes et al, 2009;Irava and Moores, 2010;Stewart, 2003).…”