The nature of the family business human capital is complex. Family and non-family employees have the potential to offer unique and distinct contributions to the firm. Yet some human resources practices might be perceived as a preferential treatment to family employees over non-family ones.
This could be detrimental to the reputation of family business, being perceived as socially irresponsible, and potentially limiting their ability to attract qualified nonfamily employees, which could ultimately affect the company’s long-term performance.
