What is Partnership Abilities

Family businesses are described as organizations owned by one or more members of the same family. Most of the business organizations in the world consists of family firms. However, although they constitute a larger share in almost all of the economies, in their first 5 years of operation, 90% of the family businesses disappear. Of the remaining 10%, 67% die or change ownership after first generation. Only 12% survive under current ownership past the third generation. Therefore, in order to maintain the continuity of the business, family businesses have to achieve competitive advantage. One way to achieve competitive advantage is through becoming market oriented. In this connection, the purpose of this chapter is to identify the role of market orientation and the four basic organizational capabilities (entrepreneurial ability, management ability, global ability, and building partnerships ability) on gaining competitive advantage by systematically reviewing relevant concepts, thereby contributing to the existing literature.