Unveiling structural and emotional drivers of dynamic capabilities in family firms: the contingent role of firm size

Purpose This study investigates the influence of family involvement in firm ownership on the deployment of dynamic capabilities, differentiating between the more structural aspects of family ownership (i.e. ownership dispersion) and the more emotional aspects (i.e. wealth concentration). Design/methodology/approach We test our hypotheses on a large base of Spanish family-owned tourism firms. The idiosyncratic characteristics of this economic sector, mainly composed of family-owned firms, make it an excellent context for the purposes of this research. Findings Building on this contextual approach, our study finds that both sides of family ownership have ambivalent effects on the development of dynamic capabilities considering the size of family business. Originality/value Competitive pressures force companies to capitalize on dynamic capabilities, as they empower firms to increase their distinctiveness through new products, processes and business management models. However, research remains particularly ambiguous regarding the commitment to innovation and learning capabilities for family businesses, where different aspects of family ownership might alter innovation processes.