Togetherness in Indian Family Businesses

Family businesses are known to have unique competitive advantage over professionally managed firms. Habbershon and Williams (1999) suggest that this competitive advantage is derived from the ‘familiness’ of the business – i.e. a bundle of resources that are distinctive to the firm as a result of the owning family’s involvement. The controlling family’s shared beliefs, practices, policies, philosophies and doctrines are crucial family inputs that shape this ‘familiness’ of the firm. It is the higher degree of convergence on these counts, which enhances goal-congruence and trust among family members. Being ‘together’ is thus conventionally considered a tremendous source of strength for the family and the business. However, all across the world, societies have been undergoing changes. For instance, economic liberalisation followed by rapid expansion of the middle class and further integration with the global economy have been instrumental to a number of changes in India.