Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms

The appropriate resources are necessary but insufficient to achieve a competitive advantage. Resources must also be managed effectively. Herein, one develops a resource management process model composed of three components that can lead to a competitive advantage. These components include the resource inventory (evaluating, adding, and shedding), resource bundling, and resource leveraging. This paper examines resource management in family firms and thus explores the unique characteristics of five resources and attributes of family firms that provide potential advantages over non family firms. The resources are human capital, social capital, patient capital, survivability capital, along with the governance structure attribute.