A Conceptual Model of Family Firm Sustainability the Research Agenda

Abstract

The family firm is arguably the oldest form of governance. Family businesses make a size able portion among businesses worldwide, yet studies on them are fairly recent and findings are unequivocal about its pe1for111ance and sustainability. This study explored the mainstream business literature and academia to develop a conceptual model delineating factors of fam ily firms' success and sustainability. Incorporating previous descriptive and conceptual work done on the unique capabilities of family firms, this paper conceptually accounts for four key factors - Governance, Renewal, Ownership and Wealth - as critical factors enabling family firms' transgenerational success and longevity. These factors are likely to give family firms a measure of ambidexterity: effective at leveraging and exploiting inherent capability as well as achieving capability adaptation, renewal and exploration. This study also attempts to extend the family business sustainability research by empirically validating this conceptual model by undertaking a quantitative field survey among owner managers and non-family executives of family firms in the Tamil Nadu State of India.