Familiness as a dynamic relational capability: a mechanism-based framework of succession in family firms

Abstract

Purpose This study aims to develop an integrative, mechanism-based framework explaining how familiness is enacted as a dynamic relational capability during family firm succession. It addresses the fragmented nature of existing literature by shifting the conceptual focus from static resource possession to the internal, dyadic interaction dynamics between predecessors and successors. Design/methodology/approach Following a theory synthesis approach, this article integrates the resource-based view, social capital theory and the dynamic capabilities perspective to construct a conceptual model mapping dyadic interaction mechanism to successor readiness and long-term organisational outcomes. Findings The study proposes that familiness operates as an inward-focused dynamic relational capability. It maps three core intergenerational mechanisms, namely trust, knowledge transfer and role acceptance, directly onto the relational, cognitive and structural dimensions of social capital. These mechanisms collectively shape successor readiness, which mediates the transition to long-term firm performance and sustainability. Crucially, the model incorporates iterative feedback loops illustrating how post-succession performance reconfigures and renews familiness for future transitions. Research limitations/implications As a conceptual article, the framework requires empirical validation. Future research should quantitatively test the proposed mediation effects (full vs. partial mediation) and investigate critical boundary conditions representing the “dark side” of family dynamics (such as nepotism, extreme conflict and incumbent resistance). Practical implications The study provides actionable insights for family business owners and advisors, demonstrating that succession is a relational capability-building endeavour. It highlights the importance of managing structured mentoring, mutual role transitions and building cognitive competence to foster genuine successor readiness. Originality/value This study advances the literature by turning the dynamic relational capability lens inward to the internal incumbent-successor dyad. It provides theoretical integration by mapping key relational mechanisms onto classic social capital dimensions and establishing successor readiness as the vital microfoundational link to macro-level firm continuity.