‘Family Togetherness’ in Governance and Family Business Sustainability

The unique competitive advantage of family firms (Sirmon & Hitt, 2003) is derived primarily from the ‘familiness’ (Habbershon & Williams, 1999) of the business. The controlling family’s beliefs, practices and policies are crucial inputs that shape the ‘familiness’ of a family firm. Familiness is a manifestation of the practice of governance in the family (Ramachandran, 2015). It implies agreement among family members on policies and processes related to the management of the interface between family and business (Carlock & Ward, 2010). Well governed business families focus on implementation of the same on a continuous basis that leads to openness in communication, goal-congruence and overall trust among members (Eddleston et al, 2010). Family togetherness is therefore central to enriching family’s resource-bundle. However, the extant literature does not clearly define the meaning of family togetherness, and its role in family business governance.