Purpose – The purpose of this study is to draw on the experiences of family
owned firms, and explore how contemporary human resource management and
allied developments shape their business practices.
Design/methodology/approach – Interviews were conducted with eight family
businesses involved in several industries in Western Australia.
Findings – 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.
Originality/value – From a practical standpoint, the research addresses the
complexities of managing contemporary human resource management
developments in ways that contribute to improved family firm performance. From
a theoretical perspective, key insights of the resource-based view of the firm and
strategic human resource management theory are considered to gain a deeper
understanding of family firms’ adaptive managerial activities
