Strategic management in family business. The missing concept of the familiness learning mechanism

Abstract

PurposeThe purpose of this article is to provide a comprehensive understanding of the roots of family firms' competitive advantages by defining and testing the familiness learning mechanisms that emerge from the interaction between family and firm. Because family members are economically, emotionally and socially attached to the firm, family firms are expected to be able to develop unique and difficult to imitate learning mechanisms related to family firm value creation.Design/methodology/approachThis study operationalizes and tests the concept of the familiness learning mechanism using a sample of nonlisted Spanish family firms. The sample is analyzed using the structural equation modeling method.FindingsResults show that family firms' ability to accumulate internal and external knowledge, integrate social knowledge, as well as create and retain socioemotional knowledge forms the concept of the familiness learning mechanism, and the authors show what implications it might have for family firm value creation.Originality/valueBy using the dynamic capabilities approach, this article highlights the importance of the knowledge and learning derived from family involvement in the firm. The creation of learning mechanisms occurs because of the close relationships between family members and their simultaneous participation in the family and in the company systems, which creates a unique context wherein knowledge and learning emerge in an idiosyncratic manner.

How organizational readiness for digital innovation shapes digital business model innovation in family businesses

“…This mechanism contributes to the effective management of family resources and capabilities generated by the interaction between a family and its business. The accumulation of internal and external knowledge, the integration of social knowledge, and the retention of socioemotional knowledge are three factors that distinguish the learning mechanism of a family business (Barros-Contreras et al, 2020). An organization that is sufficiently prepared for digital innovation tends to build a strong knowledge base, develop its ability to implement the best configuration of resources, and maintain social ties to support the successful implementation of digital innovation (Chang and Lee, 2008).…”

“…As a result, the collective knowledge of a given enterprise is obtained through the process of merging knowledge from multiple sources, which stimulates the learning mechanism in family firms (Prieto-Pastor et al, 2018). Concerning socioemotional knowledge retention, the reciprocal ties established by family businesses and external groups constitute part of the "affective endowments" of the family businesses (Barros-Contreras et al, 2020). Accordingly, organizations with a high level of readiness for digital innovation are inclined to build cooperation and social ties with their external stakeholders (Lokuge et al, 2018).…”

“…Accordingly, organizations with a high level of readiness for digital innovation are inclined to build cooperation and social ties with their external stakeholders (Lokuge et al, 2018). These social bonds can provide opportunities for knowledge flow and sharing that, in turn, help develop the learning processes of the family businesses (Inkpen and Tsang, 2016;Barros-Contreras et al, 2020).…”

“…Moreover, socioemotional wealth, which Hern andez-Perlines et al (2021a) has analyzed, is another variable that influences the outcomes of family businesses. Given that family businesses have distinctive learning and knowledge management mechanisms that are rooted in the interaction between the two social systems of families and their enterprises (Barros-Contreras et al, 2020;Chirico and Salvato, 2008;Chirico and Nordqvist, 2010), such businesses need to actively carry out continuous external learning and then integrate that learning with internal knowledge, thereby creating a unique set of resources and capabilities for digital BMI. Knowledge management is a key driver of innovation activities (Chaithanapat et al, 2022).…”

Familiness, business strategy and stakeholder engagement: The internationalisation of Spanish olive oil mills

“…Regarding the structural dimension, Pearson et al (2008) suggest that families have abundant internal links, which are appropriated by FBs. Close relationships between family members, together with their membership in family and business social systems, generate a familiness learning mechanism, achieved in a unique context in which knowledge and learning occur in a distinctive way (Barros-Contreras et al, 2020). This structural dimension of the SC has been measured with items that consider social interactions among the members of the group from time spent and from close contact (Sanchez-Famoso et al, 2015).…”