Family Business Identity as Source of Performance, Efficiency and Competitive Advantage

Abstract

This paper addresses the importance of understanding the creation and continuous development of organizational identity as a source of performance, efficiency and competitive advantage of family businesses in relation to non-family businesses. I present three stages of family business identity creation and development and their unique characteristics that drive performance and efficiency: founder or founding family controlled stage, extended family stage and non-family members and management stage.

The effect of ownership and management structure on family businesses performance

“…literature has identified the unique attributes of family firms vis-à-vis corporations of diverse ownership and management (Lee, 2006). Recent research suggests family firms often possess unique characteristics and sources of competitive advantage relative to nonfamily firms (Bratnicka-Myśliwiec et al, 2019;LABAKI, 2018;Moaşa, 2019;Phua, 2017;Sandlin, 2017). These unique and inimitable resources enable family firms to achieve and sustain superior levels of financial performance over time (Cirillo et al, 2020;Kallmuenzer & Peters, 2018;Martínez-Romero et al, 2020;Saidat et al, 2019;Santiago et al, 2019;Zahra et al, 2008).…”