Constrictive vs. distinctive familiness and the culturing of familiness capital (FamCap)

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.