Interviews were conducted with eight family businesses involved in several industries in Western Australia.
The purpose of this study is to draw on the experiences of family-owned firms and explore how contemporary human resource management (HRM) and allied developments shape their business practices.
Significant strengths emerged relevant to “formalised HRM processes” and “familiness”. However, challenges were simultaneously experienced or interpreted as negatively affecting family firm performance. In addition, there was a relationship between challenges and external environmental factors. These challenges are categorised as “labour costs and supply” and “formalising HRM practices”. Further, participants discussed emerging opportunities, and how they were strategically considering the relationship between organisation finance, innovation, future growth, operations and HRM.
From a practical standpoint, the research addresses the complexities of managing contemporary HRM developments in ways that contribute to improved family firm performance. From a theoretical perspective, key insights of the resource-based view (RBV) of the firm and strategic HRM theory are considered to gain a deeper understanding of family firms' adaptive managerial activities.
