A Resource-Based Framework for Assessing the Strategic Advantages of Family Firms

TLDR

The Resource‑Based View offers a theoretical framework that isolates firm‑specific, dynamic resources, and defines “familiness” as the distinctive bundle of resources arising from family involvement. The authors propose a research and practice method to assess the behavioral and social phenomena within family firms that generate competitive advantage. Applying a familiness model resolves issues with generic claims of family firm advantage and delivers a unified systems perspective on family firm performance.

Abstract

The Resource-Based View (RBV) of competitive advantage provides a theoretical framework from the field of strategic management for assessing the competitive advantages of family firms. The RBV isolates idiosyncratic resources that are complex, intangible, and dynamic within a particular firm. The bundle of resources that are distinctive to a firm as a result of family involvement are identified as the “familiness” of the firm. This approach provides a research and practice method for assessing the specific behavioral and social phenomena within a firm that provide an advantage. Using a familiness model for assessing competitive advantage overcomes many of the problems associated with the generic claim that family companies have an advantage over nonfamily companies. It also provides a unified systems perspective of family firm performance.