Family business values and emotional shift over time due to generational change, external forces, and life-cycle stages. The founders perceive the business as their individual legacy, and they imprint the business with their identity and values. When the business is passed on to the next generation, there are conflicts due to the different perceptions of leadership, innovation, and risk.
This is a component of what researchers have labeled “familiness”—a unique cultural resource that assists with competitive advantage as well as with emotional nuance. Siblings and in-laws will perceive the business differently depending on how close or distant they are from the original vision or varying levels of engagement. Professional managers can feel frustrated with informal family governance initially, but more structure is what can bridge the gap between emotional ownership and professional capability.
The Resource-Based View argues that such cultural and emotional attributes—though intangible—can become strategic resources with effective management. Sensitivity and understanding of the shifting roles and expectations of the family are key in building a strong, progressive culture.
Chrisman, J. J., Chua, J. H., & Sharma, P. (2005). Trends and directions in the development of a strategic management theory of the family firm. Entrepreneurship Theory and Practice, 29(5), 555–576. https://doi.org/10.1111/j.1540-6520.2005.00098.x
Brice, W. D., & Jones, W. D. (2013). The link between family firm culture and performance: A study in both a developed and a developing economy. The Business Review, Cambridge, 21(1), 81–87.