Family business research remains inconclusive about how family influence affects the financial performance of family firms. Drawing on agency theory and the resource-based view, most studies examine family involvement in ownership and management, which reflects the family’s ability to make decisions. Other studies emphasize the family’s willingness to pursue specific objectives, particularly those related to socioemotional wealth. However, particularistic behavior in family firms cannot be explained solely by ability or willingness. Building on this reasoning, we propose that both ability and willingness are necessary but individually insufficient conditions for explaining family firm performance. We further argue that their joint presence constitutes a sufficient condition. Using a sample of 141 family firms, our results identify seven configurations combining measures of ability and willingness that are associated with high financial performance, thereby supporting our arguments.
