A model of family identity in family businesses

Family involvement in business may provide the business performance advantages but as the same time family involvement presents unique challenges that could jeopardize business survival . The entanglement of family and business is so strong in such entities, called family business, that distinction between the family and the business is blurred. In a healthy relationship where family and business are in harmony, the family business enjoys the competitive advantage due to familiness, an unique and inimitable bundle of resources resulting from the interaction of family with the business. In other cases, the destructive influence of family relationships such as sibling rivalry is strong that very few family businesses successfully navigating the transition; results in more than 85 % of family businesses fail to survive to third generation.