Research of Competitive Advantage in Family Firms on Organizational Flexibility

Agency theory and resource-based view explain the competitive advantage of family firms from the perspective of agency cost and resource in family firms. However, their explanation all overlook the competitive environment in which family firms are embedded. This paper tries to explain the competitive advantage of family firms from the perspective of organizational flexibility. More specifically, it: (a) reviews the theoretical studies on the competitive advantage of family firms from agency theory and resource-based view; (b) explores the relationship between characteristics of family firms and organizational flexibility; (c) summarizes the determinants of organizational flexibility of family firms.