How “Familiness” Influences the Business: Cases from the Luxury Industry

Abstract

In the current literature, several authors have explored
the peculiarities of family businesses (Aronoff & Ward, 1995;
Astrachan & Shanker, 2003; La Porta et al., 1999). On the other
hand, attention has been devoted on the characteristics of luxury
firms (among others Mosca, 2008; Brioschi, 2005; Aiello &
Donvito, 2006). However, to the best knowledge of the authors, no
attempts have been made so far to investigate the “familiness”
and the entrepreneurial orientation in family firms operating in
the luxury market. This article starts from the available
literature on the subject, and aims to show how the strengths
arising from the fact of having an entrepreneurial family and
being a luxury brand, are interwoven. The synergy that is thus
created, leads to a fundamental competitive advantage, creating
loyalty and making the products highly desirable. The paper
further investigates the relationship that exists between
successful brands in the luxury market and the family component
of the company. It also shows how “familiness”1 can contribute
actively to the success of a brand in the market of high-end
goods, and how it can ensure the longevity of family businesses
operating on the luxury market.