Family-owned Firms Have the Upper Hand in Business

“Entertaining different perspectives without fear of disintegration is a key strength of the family firm. New employees need to understand the power of the family culture pervading all the hearts and minds in the firm. Likewise for non-family firms – a general family feeling within the culture is what has given many of the best entrepreneurial firms their cohesive power, and helped them to mature into the best big businesses. “Employees are held together by the confidence that bonds of love give them in a family firm,” says Professor Nicholson. “There is good conflict and bad conflict. Family firms can have more of both! But personal conflicts can be avoided by good governance.” Governance is more complicated in family firms than other types, but can be readily crafted to ensure the family speaks with one voice.