Family Firms Can Perform Better by Overcoming Strategic Unwillingness: Implications of “Familiness” for Coopetition Strategy

Abstract

This study discusses the primary characteristics of family firms in implementing strategic decisions and the fundamental nature of coopetition. In this context, we provide a rather ironic perspective that has not been discussed in prior studies. Family firms prioritize the preservation of socioemotional wealth rather than seeking economic benefits when making strategic choices, explaining their unwillingness to engage in coopetition strategies. However, these strategic features enable family firms to implement coopetition strategies more successfully than other types of firms. This is because they demonstrate a lower risk of opportunistic behavior, driven by the pursuit of self-interest rather than collective benefits. This study provides valuable insights and implications by associating the unique characteristics of family firms in implementing strategic decisions with the likelihood and stability of coopetition.