A systematic literature review on family business capabilities

• 76 papers on family business capabilities are examined through a systematic review. • A conceptual framework is developed, identifying key drivers and outcomes. • Family influence is identified as a key driver of ordinary and dynamic capabilities. • Outcomes include competitive, financial, and non-financial performance. • The framework reveals 6 research gaps, leading to 21 research questions. Despite significant growth in strategic management literature, research on firm-level capabilities in family business remains fragmented. This paper aims to consolidate this field by comprehensively examining ordinary and dynamic capabilities in family firms. Drawing on the theoretical foundations of the resource-based view and dynamic capability theories, we conducted a systematic literature review of relevant theoretical and empirical studies, including 76 journal articles, spanning a period of more than 20 years. The study proposes a framework that systematizes the literature, outlining main drivers (e.g., family influence and other factors), types of capabilities (ordinary and dynamic), and related outcomes (competitive, financial, and non-financial). The review emphasizes the critical role of family influence—in terms of family business status and family involvement—in shaping capability development and highlights the importance of family behavioral dynamics, including familiness and socioemotional wealth. Finally, the study identifies gaps in existing literature and proposes research questions to guide future research.