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

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.

Research highlights▶ This paper explores the nature and form of the familiness construct. Specifically it identifies the constituent dimensions of familiness as: Human resources (reputation and experience); Organisational resources (decision-making and learning); and Process resources (relationships and networks). ▶ Furthermore, we highlight the paradoxical nature of each of these dimensions in terms of their f+/f- capability that must be managed capably if familiness is to generate a competitive advantage for any family firm.