4. Strengths and Weaknesses of Family Firms (c) Thomas Zellweger, 2017

What are typical strengths of family firms? What are typical weaknesses of family firms? Consider the following statement: ‘If family is involved in ownership and management, family firms are naturally protected against agency conflicts.’ Do you agree? Why or why not? What are typical resource advantages and disadvantages of family firms? In what way could the long-term orientation often attributed to family firms become a source of competitive advantage? In what way could it be a disadvantage? (c) Thomas Zellweger, 2017

In what ways are family and business What does ‘role ambiguity’ mean in the context of family firms? Why is it a typical weakness of family firms? Some argue that, over time and generations, family orientation (concern for harmony and continuity) overtakes entrepreneurial orientation (concern for innovation and growth). Put differently: family orientation will eventually suffocate entrepreneurial orientation. Do you agree? Why or why not? How would you ensure that this is not taking place? In what ways are family and business logics opposed? In what ways are they complimentary? (c) Thomas Zellweger, 2017

Name some attributes, decision-making criteria and norms usually attributed to the family that might be beneficial for the firm. In what ways are they advantageous? What do we mean when we say that family firms have ‘bivalent’ attributes? Why is a shared identity and strong family cohesion not always beneficial for business families and their firms? (c) Thomas Zellweger, 2017