Abstract:
The special capacity of family firms to perform competently is termed ‘familiness’. The construct
familiness refers to strategic processes in family firms, based on the unique capabilities and
involvement of the family firm owners that enhance business performance. However, the culture of
familiness has to be observed cautiously with both its positive (distinctive) and negative (constrictive)
attributes. Only when distinctive familiness functions optimally, does it operate as ‘familiness capital’
(FamCap). As far as could be established, this review introduces the concept of FamCap for the first
time as the ultimate performance of familiness. It furthermore explores the unique characteristics that
could foster the cultivation of FamCap in family businesses.
