Original Research

The contribution of familiness to the performance of family businesses

W. P. Venter, S. Kruger
Acta Commercii | Vol 4, No 1 | a48 | DOI: https://doi.org/10.4102/ac.v4i1.48 | © 2004 W. P. Venter, S. Kruger | This work is licensed under CC Attribution 4.0
Submitted: 05 December 2004 | Published: 05 December 2004

About the author(s)

W. P. Venter, Altron Group, South Africa
S. Kruger, Rand Afrikaans University, South Africa

Full Text:

PDF (186KB)


While family businesses are known to consistently outperform non-family businesses in financial terms over the long run, family businesses have received comparatively little attention from researchers. In this article an explanation is offered for this superior performance in the form of the concept of "familiness" - the unique contribution that family involvement brings to any business (which is divided into founder capital and family capital). It is explained that family businesses possess no general competitive advantage over non-family businesses. The unique strength of successful family businesses does not lie in their espoused advantages, but in their ability to sustain and adapt, through family capital, the culture created by the founder. An evolutionary conceptual model of the creation and transmission of familiness is provided to explain how this unique strength influences family business performance over the long run.


No related keywords in the metadata.


Total abstract views: 4128
Total article views: 4903


Crossref Citations

1. Role of Family Resources in Firm Performance: Evidence from Tanzania
Goodluck Charles
Journal of African Business  vol: 15  issue: 2  first page: 122  year: 2014  
doi: 10.1080/15228916.2014.920607