I would argue that the impacts of familiness in the business may increase the performance in the family firm but it has also contributed to the decrese of innovation input in family firms: "All too often family firms fail to appreciate that company growth helps fuel everything else; all too often they let their culture and family priorities block their ability to grow" (Lorange, 2005). in a family business when decisions are to be made for the growth of the company, certain family memebers who are put in executive positions in the firm, may develop this sense of entitlement that makes them feel the need to not communicate with other workers in the firm due to the fact that it is their family business. There is also the issue of professionalism in the family firm which contributes to the lack of innovation in a family firm. family members who work in the firm have the idea that their jobs are secured in the business, so they dont feel the need to give in their best to contibute to the growth of the business. Another issues is the family firms tend not to seek entrepreneurail advice from outsiders that are not family; they believe only in the entrepreneurial knowledge within the family firm: "the family-members-cum-owners often feel that they need to have total control over growth initiatives. They simply do not want to allow outsiders in to play the internal entrepreneur role" (Lorange, 2005). lastly, familiness in a family firm may be contributing to the lack of focus in talent management in the firm; prioritzing the need for family relationship over the success of the business.
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Family Business Labs
"The Successor's Paradox"
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Thank you @Olivia, You offer a descriptive overview of the impact of familiness on family firms, highlighting both positive and negative aspects. You've cited Lorange (2005) to support your argument, which adds credibility to your analysis. However, your post lacks depth in its analysis and relies heavily on normative assertions without critically examining the underlying causes or potential mitigating factors.
Your argument appears to be normative, as you assert that familiness in family firms leads to decreased innovation and growth due to factors such as entitlement, lack of professionalism, reluctance to seek external advice, and prioritization of family relationships over business success. While these are valid concerns, your analysis could benefit from a more nuanced exploration of the underlying dynamics and potential solutions.
Finally, your post could be more analytical by providing real-world examples or case studies illustrating how these challenges manifest in different family firms and how they are addressed or mitigated. By offering concrete examples, you could strengthen your argument and provide practical insights for readers grappling with similar issues in their own family businesses.
In terms of value adding, your post offers important considerations for family firms to reflect on, particularly regarding the need to balance familiness with professionalization and innovation. However, to enhance the value of your analysis, you could delve deeper into the underlying causes of these challenges and explore potential strategies for overcoming them.