Exploring the Role of Agile Operant Resources in the Facilitation of Strategic Orientation: The Case of Family-owned Businesses in Pakistan

Introduction

In today’s volatile and challenging global business world, each firm wants to ensure sustainable performance. Family-Owned businesses (FOBs) are also striving hard to gain sustainable firm performance. To attain sustainable performance, FOBs need sound strategic orientation. Therefore, this study provides some significant insights on sustainable FOB performance through sound strategic orientation.

FOB is an important part of an economy and has played a fundamental role since ancient times. It covers a vital part of an economy and embarks its prints as a traditional business that is carried forward with prestige from generation to generation. FOB takes a huge percentage in each sector, that is, almost 80%–90%. Some of them are listed and others are non-listed on the stock exchange (Zaidi & Aslam, 2006). This is the very reason that it plays a significant role in the growth and development of economies. In Pakistan, FOB plays a dominant role in the business sector and plays a major role in the development of the emerging economies (Ghani & Ashraf, 2005). Business dynamics are changing at a fast pace due to globalization and advancement in technology, and it is creating an impact on the sustainability of FOB (Tahir & Sabir, 2015).

In the twentieth-century, a firm’s sustainable performance was based on economies of scale, control and command hierarchies, planned and periodic changes, followed by tight and rigid processes (Sharma & Manikutty, 2005). However, the transition towards a more entrepreneurial and agile mindset has significant implications on the entire organizational system, including FOB (Schoemaker et al., 2018). The twenty-first-century global business model is based on VUCA, that is, risk, volatility, uncertainty, complexity and ambiguity (Schoemaker et al., 2018). FOBS are based on different and traditional dynamics; so it is challenging for them to adapt to the requirements of the new era. The incorporation of VUCA that leads to innovation and sustainability in the new dynamics of business is difficult to implement (Schoemaker et al., 2018). VUCA reflects an entrepreneurial agile mindset that can deal with challenges and may even refine the processes, giving way to innovation and new business models leading towards the firm’s sustainable performance for FOBs (Schoemaker et al., 2018).

Of late, the relationship between resources and sustainable performance has started gaining rapid attention within the field of management sciences (Jain & Nair, 2017). The role of resources has always been essential and important for the survival and sustainability of an organization. Throughout history, researchers have emphasized the significant contribution of resources and their unchanging role.

Resources are the weapons that support organizations in all scenarios. The shape of resources might have changed over time, but their role always remains significant in all types of firms. In family firms, where there is no scarcity of resources, many family owners possess resources that are inherited and are trickled down from generation to generation, which becomes the basis for their survival and sustainability in today’s competitive market. Previous research focussed more on tangible resources rather than intangible ones. However, the classification of intangible (operant) resources emerging from the family firms has often been neglected in previous studies. This study picks the notion of resource classification by categorizing operant resources of family firm owners that support sustainable firm performance. In the era of the millennium, service-focussed culture shifted the order of resources by prioritizing operant (intangible) over operand (tangible). Therefore, the focus of research also shifted towards the dimension of operant resources. The role of the operant resources of the family firm owner (FOB) that supports to facilitate the firm’s sustainable performance in family businesses has not been explained.

Traditional resources (land, labour, capital, etc.) and practices are no longer a measure of sustainability. A rapidly changing business world that is embarked by innovation, competition, and globalization needs unique measures for sustainability. Resources have always been important and often remained a debatable topic in the last decades. Novel themes emerged by encouraging management to strategically exploit unique resources and capabilities are actually the significant factors that drive the sustainability of FOBs. Barney (1991) proposed the Resource-Based View in which firms were understood as a bundle of assets and capabilities. Companies possess a heterogeneous nature of strategic resources or capabilities, which help in catering to a firm’s sustainable performance. Therefore, management needs to pay attention towards nurturing and exploiting those strategic resources. Knowledge-Based View (KBV) emerged in 1996 as an extension of RBV. The KBV ascertains the status of firms as heterogeneous entities loaded with knowledge (Carolis, 2002; Grant, 1996). KBV proposed knowledge as the strategically most significant asset of the firm. KBV emphasizes intangible resources as the source of the sustainable performance of the firm.

In earlier studies, Barney (1991) classified resources into physical, human and organizational capital forms. Resource advantage theory extended the work in a comprehensive manner by categorizing resources into financial, organizational, informational, physical, legal, and relational. Resource advantage theory suggests the hierarchy of resources in terms of basic and higher-order resources (Hunt & Lambe, 2000a). These higher-order resources are known as higher-order competencies, and they have in reality acted as barriers against basic resources (Teece, 2012). Service dominant logic emphasizes the primacy of operant resources over operand resources by differentiating among them (Vargo & Lusch, 2008).

Resource advantage theory focusses on resource classification, which drives firm competitive advantage. However, the classification of intangible/operant resources is the least-focussed area of research in previous theories. This study will explore the notion of agile operant resources by categorizing intangible resources into further categories that lead firms towards sustainable performance. This differentiation indicated the pertinent role of agile operant resources for the sustainability of the firm.

The organizational ability to manage, reassemble, respond proactively and decisively by taking ephemeral opportunity advantage has become the key to sustained performance in today’s dynamic business environment (Achrol & Kotler, 2014; Leavy, 2014). Two trends which have had an impact on the landscape of businesses are rapid change and the growing level of complexity and interdependence. These challenges of the twenty-first century can be copped up by adopting higher-order competencies (Schoemaker et al., 2018). Higher-order competencies encourage firms to do the right things at the right time (Schoemaker et al., 2018). The development of these capabilities can equip firms with the ability and strategies to safeguard the common pitfalls of the environment. It helps the organization to judge and monitor its external environment. A firm with a strong business model can better seize and secure opportunities before competitors do.

Higher-order capabilities can help change the business surroundings to a favourable situation by setting standards, influencing the development of regulations or other productive measures. These capabilities are based on agile operant resources which are complex to create and deploy (Schoemaker et al., 2018), and help FOB to gain a sustainable advantage. Therefore, this research is intended to surface the hidden agile operant resources that support firm strategic orientation.

‘The agile organization philosophy is based on these sets of higher-order competencies because agility develops the possibility of quick responses and compatibility with the environment, which permits the firm to enhance its strategic orientation’ (Yeganegi & Azar, 2012). Agility refers to the ability to quickly think and respond. It can only be possible through scanning the environment with swift (agile) operant resources. Agility depends upon the dynamic package of operant resources based on higher-order competencies which enable the firm to get a sound strategic orientation (Bowman & Ambrosini, 2003). An increased level of agility raises the ability of the firm to respond proactively to unexpected environmental changes (Sune & Gibb, 2015). Strategic orientation provides firms with the sense of long-term opportunities and threats by converting threats into favourable business strategies. Thus, this research aims to explore the hidden role of agile operant resources based on the agile competencies of FOB owners, which supports organizations in attaining a sound strategic orientation that drives further sustainable firm performance. The following two research questions are addressed and answered through this study:

How do the agile operant resources of FOB owners facilitate sustainable firm performance?

The article follows the sequence of introduction based on research objectives, the rationale of the study and gaps spotted along with research questions. Other sections of the article involve a review of literature with conceptual and empirical support, a detailed description of research methodology, findings based on data structures, discussion with propositions along with the conclusion, research implications, and future directions.

Review of Literature

Research Methodology

This study is based on the relativistic school of thought. It acknowledges that there is no specific or absolute truth, and each view is rooted in their differences in perceptions (Denzin & Linclon, 2011). The paradigm of this study is interpretivism, which encourages multiple interpretations of reality (Meriam & Tisdell, 2015). It used the exemplary nature of research which studies the developmental nature of the phenomenon, (Bronk, 2012) with its complete picture and particular characteristics (Damon & Colby, 2000). This research used an abductive approach, which starts from the sets of observations and seeks the most likely explanations for the observations (Mantere & Ketokivi, 2011). In the context of this research, some theorists’ observations indicate that agile operant resources act as a pertinent source of sustainability in terms of strategic orientation, but it requires more in-depth clarity and evidence to support this surprising puzzle (observation) through qualitative data. Therefore, this study adopted abductive reasoning as the nature of research to explore this observation theoretically. In this study, we used sampling based on grounded theory.

Qualitative research design follows the sample selection process referred to as theoretical sampling. It somehow begins as purposive sampling (Creswell & Creswell, 2017). Theoretical sampling is used in data collection in which ‘the researcher jointly collects, codes and analyses data then decides what data to collect next and where to find them, to develop theory as it emerges’ (Glaser & Strauss, 1967, p. 45). Researchers start with sample selection based on relevance to the research problem. Data drives the investigator to the next document to be read, the next informant to be interviewed and then so on. It is an evolving process guided by emerging theory (Merriam & Tisdell, 2015).

The saturation level of answers guided the number of informants selected for the study (Charmaz, 2008). Therefore, this research gathered responses of 30 informants where saturation level occurred. This sampling aims to develop the properties of theoretical categories as evident in our case. While determining the sampling, the authors gathered significant information based on certain questions about the properties of the theoretical categories formalized by the researcher (Charmaz, 2015). Theoretical sampling gave the researchers the freedom to determine the range of variations in emerging categories or themes.

The study is qualitative in nature; therefore, a non-probability type of purposive sampling is used. Purposive sampling refers to the judgmental criteria of sampling in which a sample is selected based on specific criteria. For example, the phenomenon of this study is sustainable firm performance, and sustainability refers to the long-term survival of the firm. Therefore, this research selected those family firms that successfully established sustainability in the last 10–15 years and still competing in today’s volatile business world. The unit of observation is FOBs of Pakistan. Family firm owners of the first, second and third generations are selected as samples for the study. It nurtures the waves of new knowledge and synergies for future directions.

For this, purposive sampling was conducted. This study was conducted in the specific context of a FOB. During interviews, informants were asked several semi-structured questions. What are the pertinent operant resources that must be possessed by FOB owners for business sustainability? How did you use operant resources to sense opportunities and threats? Initially, those firms are chosen for interviews, which have a rich history of being family firms in the last 20–40 years. Most interviews are taken from the second and third generations. A total of 30 interviews were conducted at Director and CEO levels (especially family owners) in the second and third generations. Well-known companies’ interviews were conducted. Their names are hidden due to privacy and anonymity issues. A total of 30 informants were interviewed, of which 28 are males and 2 were females. All are acting as active participants in their family business at the CEO, Director, and Head of Department level. Most informants belonged to second generation, but some are from third generation. Usually, the second round of interviews were conducted to cater maximum voice of informant responses, but some informants respond to maximum information in round 1. Their minimum working experience is around 10–35 years of handling family business in many diversified sectors or industries. Their minimum qualification lies between graduation and Master levels. The mode of the interview was selected based on the informant’s convenience. Some of the interviews were conducted through personal office visits, but most of them were conducted through telephone due to the Covid-19 crisis, thereby maintaining Government’s lockdown restrictions and following precautionary measures. Some of the interviews are audio-recorded after taking permission first. The rests of them were not allowed, so field notes and notes were used, preferably to capture the information. The selected organizations possessed a rich history of the family business and have a minimum firm age of 11–50 years of business sustainability, preferably with head offices in Lahore, Pakistan. Most of the businesses have the nature of sole-owner, partnership businesses, and all are listed on the Pakistan stock exchange, having 11–50 years of the successful history of progress in Pakistan. The beauty of this study is that it covers many industries’ perspectives on the role of agile operant resources in firm strategic orientation. The rationale for handling this diversification is the commonality of agile operant resources in each sector, which is almost the same. Therefore, this study presented the cumulative perspective on the pertinence of operant resources in FOBs and their strategic orientation.

Data Analyses

The research questions of this study contribute naturally to the abductive qualitative approach, wherein the findings that emerge from the analysis of raw data are not restrained by prior theoretical lenses (Thomas, 2006). There is sparse research on agile operant resources of family business owners towards their strategic orientation, especially in the Pakistan context. Hence, there is ample scope for the development of indigenous constructs and newer theories explaining the pertinent role of agile operant resources in family business sustainability through strategic orientation, thus facilitating an abductive approach as opposed to a deductive one. Therefore, a variant of grounded theory (Corbin & Strauss, 1990), popularly known as Gioia methodology, has been used to surface the hidden magical role of agile operant resources of family owners for the strategic orientation of FOBs. Gioia’s method is a well-developed and accepted method that balances the need for new concepts’ development through inductive and abductive approaches of research based on rigorous standards (Gioia et al., 2013). The method is widely used in strategic management, organizational behaviour, management and marketing literature (Arino et al., 2016; Bettis et al., 2015). However, the use of Gioia methodology in the family business domain is relatively new. Gioia’s method considers both the researcher and informants as knowledgeable agents, who are competent enough to analyse socially constructed realities (Gioia et al., 2013). This research used Gioia methodology as a technique for data analysis. In the domain of management sciences, Gioia is known for its new concept development technique. In Gioia’s methodology, the researcher’s first focus is to report an informant’s exact words or statements that arise during interviews, and then emphasize emerging themes and patterns from the data while considering the inter-relationship among variables in the research. Researchers who adopt this method claim that the differentiating point among grounded theory and Gioia methodology is the relationship matrices among the variables. It helps to present the abductive and inductive nature of research more vividly and transparently. It comprises three levels of analysis. In the first-order analysis, the voices of informants are considered. These voices are catered through the interview responses of informants regarding multiple open-ended questions about the study. The second-order concept represents the voice of the researcher and is somehow grounded in theory. However, the third-order (Aggregate Dimension) themes present higher-order concepts. When a workable set of themes and concepts are in hand, then the repentance and culmination of themes lead towards theoretical saturation, which is referred to by Glaser and Strauss (1967). Consistent repentance of second-order themes refers to an indicator of saturation level (point) in interviews.

Findings/Results

Agile Sensing Skills

Each individual possesses sensing skills, but their effective utilization varies from person to person. In today’s challenging business world, where one side scarcity of resources and their efficient utilization and deployment becomes the challenge for firm survival and sustainable performance. Being an FOB owner, it is essential to possess those agile sensing skills which support in scanning the environment by seizing suitable opportunities and support the transformation of business towards sustainability. These agile skills are essential for firm strategic orientation. Agile sensing skills refer to the swiftness in observing and sensing patterns of an owner which enhances over time. These agile sensing skills enhance opportunistic behaviour by sharpening analytical skills. As mentioned in Figure 1.

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Figure 1.

Source: Prepared by the author based on informant’s responses.

Opportunistic Behaviour

Opportunistic behaviour defines a perceived way of capturing economic value which has neither been explicit previously nor tapped in the present competitive market. It is a behaviour that captures opportunities by sensing the environment and makes it a profitable source for your own business. It is a dynamic ability of an owner in which they sense opportunities and make it useful by converting into their favourable model through opportunistic behaviour. There are multiple other resources (operant) that allow an individual to identify and capture opportunities, such as knowledge, social network and thinking patterns, etc. (Gaglio & Katz, 2001). It became the behaviour of an individual to forge opportunities in the market. For example, as informant 3 reported, ‘Your research on market aptitude drives you toward sensing opportunities’. Many businessmen seek opportunities from failures. As informant 12 stated, ‘I always discover opportunities from failures’ and informant 17 stated, ‘When there is a threat there is always an opportunity. We just need to forge that opportunity’. It is the inside ability of an individual (FOB owner) to forge opportunities in their surroundings.

Analytical Skills

Analytical skills are the operant significant resource of the FOB owner. FOB Owner uses skill sets to analyse opportunities and threats in the market. It is a source for measuring performance. It helps in aligning stakeholder’s interests by sensing opportunities in the market. As informant 3 stated, ‘If you analysis market aptitude and study well then your stakeholders will remain to align with your firm’. Analytical skills help in analysing market niches. As informant 14 reported, ‘Gaps are everywhere you need to analyse it by converting gaps into opportunities’.

Learning and Observational Resources

Learning is an action that occurs through observation. People observe through absorbing many realities from books, lectures, practical exposure, inspiration, and tacit knowledge, etc. It is the inner ability of an individual to observe their surroundings and try to adapt to a suitable amount of change. These inner abilities possessed by an individual are the hidden agile operant resources that improve over time through many ways mentioned in Figure 2.

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Figure 2.

Source: Prepared by the author on the base of informant’s responses.

Learning ability enhances over time with practical experiences. As time passes, multiple experiences that occur in life impact an individual, which changes the whole paradigm of learning. Similar to the business world, learning improves through certain and uncertain changes in the environment. Especially, in the context of family firms, FOB owners gain inspiration from their ancestors, observe favourable and unfavourable environmental changes through tacit knowledge, practical experiences and their adaptability, etc, which enhance the learning capacity to adopt to favourable changes in the business. Over time, these changes enhance the absorptive capacity of an individual to learn and solve problems. These capabilities exist in the form of firm intangible (operant) resources and enhance the adaptive abilities of the firm owner to handle market changes. It acts as the dynamic capability to form other capabilities (Zahra & George, 2002). Due to its non-imitation ability, it acts as a strategic operant resource and sharp weapon to drive firm sustainable performance (Zahra & George, 2002). However, tacit knowledge, practical experience and person’s adaptive capabilities are important to enhance the owner’s learning and observational skills that strengthen their capacity to sense opportunities.

Tacit Knowledge

Tacit knowledge is the main operant resource having the characteristic of non-imitation and the best source of sensing opportunities through learning. While taking interviews, each informant highlights the pertinence of tacit knowledge in the family business. For example, informant 1 stated, ‘At the start, I always accompany with my father to observe things and try to learn it’. Tacit knowledge plays a major role in sensing opportunities that drive family business success. For example, informant 11 stated, ‘Without learning through tacit knowledge you cannot survive in long run’. ‘To startup any business tacit know-how is essential’. As informant 22 stated, ‘Before starting any business you must have tacit knowledge about that business’. Some of the informants emphasize tacit knowledge as a sharp weapon of learning. Informants 6 stated, ‘I believe that tacit knowledge as the best source of learning’.

Practical Experience

Another agile operant resource is a practical experience. Many informants emphasize an important detriment of experience to start any business. For example, informant 6 stated, ‘Experience is the basic resource to start any business’. It helps in handling failures. Informant 8 stated, ‘Experience based on past lessons and it is the biggest teacher to handle failures’. Past lessons increase your stemma. Informant 11 stated, ‘Experience makes you strong and strengthen’. Your past lessons gradually become your capability later. Informant 9 stated, ‘Practical life always gave you novel exposure that increases your capability’.

Adaptability and Flexibility

Adaptability refers to a person’s ability to adapt to changes and make it responsive effectively and efficiently. The role of environmental scanning is very important. When you scan the environment by analysing the possible opportunities which are essential for business, then you can cater to it through adaptive ways. When firms do not adapt certain changes failure becomes your fate. Informant 3 stated that “Failure occurs when firms neither follow the new trends nor flexible enough to cater the new things” changes adaptation drives business survival and sustainability in today’s volatile business world. Informant 16 stated, ‘I like to adapt changes because it strengthens business survival and sustainability’. Informant 27 stated, ‘if you did not improvize and have no flexibility in policies then you will collapse in business’. Adaptability is the pertinent intangible resource of every business.

Entrepreneurial Phronesis

Our research shows that FOB owners possess some agile entrepreneurial phronesis-based resources which in turn support improving owner sensing skills. We identified some entrepreneurial phronesis resources raised during interviews that drive firm sustainability in Figure 3. However, phronesis indicates the practical and theoretical wisdom of a person (FOB owner) which they use to seize opportunities. By utilizing these resources effectively and efficiently, an entrepreneur manages to create a favourable environment for business.

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Figure 3.

Source: Prepared by the author on the base of informant’s responses.

Initiator

Initiation is the force of courage and determination. It supports taking steps and moving ahead by handling all challenges in the business world, which is very essential to being an entrepreneurial family firm owner. For example, as Informant 11 reported, ‘If you have an ability to stand business from zero to progress firm then you can do any business’. The initiative enhances stamina and confidence in you. As Informant 3 stated, ‘My father burns all boats into the fire and decided to introduce our brand first time by investing the life-long earning on it’. Up and down are the parts of the business world being FOB owner, ‘you should know to start the business from scratch level (zero) to progress firm’. Informant 22 reported.

Foresightedness

Foresightedness is to analyse future projections. It creates a unique variation in the thinking patterns of the firm owner. It helps in taking decisions and drives business success. As informant 30 reported, ‘You cannot take decisions by seeing short term goals for one year. You have to set projections for up-coming 10 years’. Informant 29 reported, ‘Those people who foresee tomorrows remain successful in business’.

Vision and Values

Another important resource of an entrepreneur is vision and values. Each family owner possesses some set of values towards their ancestors that act as foundational premises to compete in today’s volatile business world. As informant 9 stated, ‘As FOB owner should have strong vision and values that need to stick on it’. They set some standards for doing business. For example, informant 12 stated, ‘never compromise on quality, values, SOPs and vision’. Sticking to vision and values is considered the gimmick of success in a family business. For example, Informant 7 stated, ‘Success requires consistency in values, vision, and aptitude of learning’.

Risk Taker

It is the pre-requisite characteristic of every entrepreneurial business firm. Each business should take a certain number of calculated risks to move in an uncertain environment (Choi & Shepherd, 2004), as all the informants emphasized this resource. For example, informant 3 stated, ‘You have to take a certain amount of educated risks in any business’. In family firms, risk-taking is considered as an ability and source of learning. As informant 27 reported, ‘If you are not open to risk then neither you can learn nor you can earn’. New avenues cannot be explored without knocking at the door of risks. For example, informant 13 claimed, ‘I often took many risky decisions to capture market shares and it remained successful in the long run’. It is a way of exploring success horizons in the business world. As informant 5 stated, ‘I learned risk-taking from my father that always takes a risk with strong backup plans’.

Openness to Experience

Openness to experience is the most pertinent resource of entrepreneurial resources in which the family owner is open to experience change by taking steps ahead. An entrepreneur explores and exploits opportunities by sensing the environment (Zahrra, 2011). New experiences open new doors of opportunities. For example, as informant 7 reported that ‘If I did not experiment then I cannot move ahead in life’. Similarly, Informant 9 stated, ‘I always open for new experiments and failures’. For innovation, you always need to try new things that ensure business survival and growth. As Informant 29 reported, ‘I believe that if you want to introduce something new in business you should need to open yourself then innovation will be possible’.

Personal Interest

The main hidden driving force (operant resource) of doing business is the intrinsic willingness and personal interest to do it. A person cannot excel in any business if he/she does not have interest in it. Therefore, personal interest is the most central factor (intrinsic) in a human, which motivates him/her to do any business activity. Most of the informants’ emphasized this factor during the interview. For example, as informant 11 reported, ‘if you show 10% interest then you must receive 20% results’. Informant 15 claimed, ‘Business is a thing which is based on your personal interests’. Other skills can be developed over time, but inner willingness is the internal factor (intrinsic agile operant resource) possessed as a trait. As informant 8 said, ‘Technical skills can be developed but willingness to do should be possessed as a trait’. Personal interest is the main determinant behind success. As informant 19 reported, ‘It was courtesy, interest and thirst of knowledge that drive my success in business’.

Challenger

Being a firm owner, you need to handle multiple challenges in the business world, like challenges to handle market conditions, the aptitude for change by sensing opportunities, etc. In short, the business world is full of challenges. You need to address all these challenges for attaining business success. For example, informant 22 reported, ‘Always do business by taking it as a challenge’. As informant 11 stated, ‘Being FOB owner, it’s very important to cope up with challenges and threats’. Challenges are the tools of growth as informant 7 said, ‘I take challenges as basically standards related to the growth of the business’.

Discussion and Conclusion

Resources often remain the burning agenda of research in each decade. Although its pertinence evolves over time, most researchers categorize resources in different ways. At the start, land, labour, and capital were considered as resources of the firm (Porter, 1981). Then several researchers contributed to the domain of resources by categorizing a list of resources on the base of firm attributes. To enhance these discussions, resources are further classified into three categories, that is, physical (technology, plant and raw material, etc), human capital (training and experience, etc) and organizational capital resources (firm structure, etc) (Williamson, 1975). The era of the 1990s is always remembered due to the famous evolving view of resources, as RBV proposed by Barney (1991). RBV classifies resources into tangible and intangible dimensions and emphasizes resource heterogeneity as the (VRIN) nature of resources as the strong determinant of competitive advantage (Barney, 1994). Firms create competitive advantages when managers develop and deploy resources that are valuable, rare, inimitable and non-substitutable (VRIN) in an existing market (Peteraf, 1993) and exploited them in some additional markets (Amit & Schoemaker, 1995). VRIN attributes of resources secure firm sustainable performance in the industry. These VRIN characteristics usually lie in firm intangible resources (Bingham & Eisenhardt, 2008).

Meanwhile, KBV (knowledge-based view) emphasizes the significance of intangible resources (knowledge, skills, and abilities) as an indicator of firm competitive advantage (Grant & Carolis, 2002). R.A theory categorizes the resources into basic and higher-order resources (Hunt & Morgan, 1995). However, S.D logic evolved in 2004 and picked up the notion of R.A theory and RBV by labelling resources as operands (tangible) and operants (intangible; Vargo & Lusch, 2008). They (2008) emphasized the pertinent role of operant resources on operand resources as a source of value creation through foundational premises (FP4; Vargo & Lusch, 2010). Another research highlighted the significant role of customer and firm operant resources blended with operand resources as a source of superior firm performance (Madhavaram & Hunt, 2008). However, the classification of operant resources is the least researched area in previous theories. This study identifies the gap by mentioning that the role of other actors may provide support to improve firm performance. Hence, previous researches demonstrated that the role of operant resources always remains pivotal in the facilitation of firm sustainable performance. Thus, this study is conducted to fill this niche (gap) by exploring the hidden role of agile operant resources and its facilitating role in sustainable firm performance.

Organizations can attain strategic orientation through these dimensions, that is, resource orientation, learning orientation, technological, market and entrepreneurial orientation. However, this research focusses on firm inside and outside orientation, which resides on resources, entrepreneurial and learning orientation. Behind these orientations, multiple agile operant resources are deployed by firm owners which facilitate firm strategic orientation that drives sustainable performance. Although resource orientation describes how firm resources drive firm performance in today’s dynamic business environment (Collis & Montgomery, 1995). The central notion of resource orientation is based on deploying a unique set of resources to exploit all environmental favourable opportunities or to neutralize threats (Peteraf, 1993; Teece et al., 1997). As compared to other orientations, resource orientation focusses on internal/inside deployment of unique resources. These unique resources are operant having heterogeneity-based attributes. The uniqueness of these resources is based on agility, which makes it capable to cater to rapid environmental changes. Therefore, the agile operant resources of family firm owners are the hidden resources that drive firm resource orientation, which strengthens firm’s strategic orientation.

Another dimension that supports to cater to strategic orientation is firm entrepreneurial orientation. Entrepreneurial orientation is based on capturing new market opportunities (niches) by renewing existing areas of operations (Hult & Ketchen, 2001). Those organizations that possess a strong entrepreneurial orientation tend to scan the environment constantly by identifying new opportunities that strengthen firm sustainable competitive positions (Covin & Miles, 1999; Lumpkin and Dess, 1996). Firm entrepreneurial orientation is based on some factors and a set of beliefs, that is, tolerance of risk, pro-activeness, innovation, autonomy, and competitive aggression (Keh et al., 2007). These factors drive firm entrepreneurial orientation collectively, but behind these factors, an agile mindset is based on agile phronetic operant resources or competencies. These agile phronetic operant resources drive the agile mindset of family firm owners to enhance firm entrepreneurial orientation. In actuality, these are the agile operant resources that form the agile mindset of firm owners that facilitate entrepreneurial orientation. These agile operant resources are initiator, foresightedness, vision and values, risk-taker, openness to experience, personal interest and challenger. All these attributes are possessed by family firm owners, which support the facilitation of an entrepreneurial orientation that leads towards firm strategic orientation. This study highlighted those hidden agile phronesis-based operant resources that act as a vehicle to drive the entrepreneurial mindset which facilitates firm strategic orientation.

Another avenue to gain sustainable firm performance in family firms is learning (Tajeddini, 2009a, 2009b). There is a strong rationale behind it, as when a company considered as skilled in creating, acquiring and transferring knowledge by reflecting new knowledge through its own behaviour, then firms more likely to respond to a rapidly changing, dynamic environment which is constantly in flux. Learning develops a strong set of values and beliefs which promote new knowledge, insights and awareness within an organization (Huber, 1991; Sinkula, 1994). Several scholars argue that new avenues of knowledge have the potential to cope with all organizational changes such as ‘an organization learns when its units acquire useful knowledge and have the sound potential to change behaviour positively’. In actuality, learning orientation becomes a firm’s valuable capability over time (Tajeddini, 2016). It is considered as firm capacity to continuously evolve with new patterns of thinking. Like other firms, FOBs already have a long survival rich history, which ingrained in learning because long-term survival and sustainability can only be possible when a firm possesses a strong learning orientation (Tajeddini, 2016). Sound learning orientation is based on agile operant (intangible) resources of family firm owners. Because they sense new evolving patterns of change from the environment and transform firm practices accordingly (Tajeddini, 2016). Therefore, it is an agile operant resource possessed by each family firm owner which supports firm learning orientation to establish strategic orientation. Sound learning and observational resources comprise agile operant resources, that is, tacit knowledge, practical experience of the person (individual) and adaptability that drives firm strategic orientation.

Sensing skills are possessed by each person but agile sensing skills are rare. Agile sensing skills support the scanning environment by sensing opportunities and converting threats into favourable opportunities. Persons who possess these skills exhibit opportunistic behaviour by analysing market trends and niches. It is essential for organizational survival and sustainability that its owner must smell opportunities by adopting proactive behaviour, then they can seize it in a better way. These agile sensing skills are based on their agile operant resources which enhance firm strategic orientation.

This research has been conducted to shed some light on hidden agile operant resources of FOB owners that drive strategic orientation in family businesses. Previous literature immensely indicate the pertinent role of resources in the family firm’s strategic orientation. Many types of resources are discussed in previous studies empirically and conceptually. We spot the gap in the literature about the hidden role of agile operant resources in developing strategic orientation. The first contribution of this study is to surface the hidden role of agile operant resources possessed by family firm owners, which supports to cater to firm strategic orientation. The second contribution of this research is to propose a theoretical framework extracted from the actual voices of informants (family owners) that outlines how agile operant resources impact family firm strategic orientation. In light of the above detailed logical discussions and propositions, this study proposed a conceptual model in Figure 4, which indicates the pertinent role of agile operant resources, that is, observational and learning resources, agile sensing skills and agile entrepreneurial resources that collectively drive family firm’s strategic orientation that leads to sustainable performance. Theoretical contributions emerged from our investigation about the strategic orientation phenomenon. However, it is essential to further examine empirically the role of agile operant resources.

Based on the above responses of informants, it can be inferred that each FOB owner possessed these agile operant resources, but the sharpness of these resources enables owners to sense new opportunities and threats that drive firm strategic orientation.

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Figure 4.

Source: Prepared by the author on the base of informant’s iterative responses.

Theoretical Contributions

This study has importance and utility for both academics and practitioners of FOBs alike. This study focusses on relativistic aspects of phenomenon and relativity often introduces towards novel terms which make a significant contribution to literature. It enhances and strengthens the ground realities of the phenomenon (strategic orientation) with multiple subjective insights. This study provides a conceptual model for academics that is enriched with data that adds value to theory development in the domain of firm’s strategic orientation. This research also provides a novel set of agile competencies as a source of catering to sustainable firm performance. This research may encourage academicians to further explore the role of other actor’s operant resources working in FOBs and other firms. The above-mentioned framework can also be used for future empirical research.

Practical Contributions

This study remains beneficial for practitioners, especially owners of FOBs because it suggests the central notion of sustainable firm performance for competing in today’s volatile business world. This study proposed a framework for FOBs operating in Pakistan through providing novel insights for establishing sustainable firm performance which indicates the pertinence of agile operant resources. It also opens new avenues of innovation and growth for FOBs by determining the primitive, yet significant role of individual FOB owners operant resources. The practical exposure of experiences serves as the fundamental tool of learning new knowledge which helps the corporate sector to compete in a better way. Managers can adopt these agile operant resources which support firm strategic orientation that leads towards sustainability. Each FOB may adopt these agile competencies to ensure firm sustainability in today’s dynamic business world.

Limitations and Future Directions

These are the following limitations and future directions:

This study is limited to family firms in Pakistan. Future studies may focus on all types of firms that did not come under the category of FOBs. This research studied the phenomenon of sustainability/sustainable development through firm strategic orientation, but future studies may focus on other constructs while studying family firm sustainability. As this research highlighted the multiple themes, concepts and variables under the strategic orientation theme, future research may conduct some quantitative research on these mentioned dimensions and variables. This study may also be conducted in different contexts in other countries. In future research, conceptual models can be tested through empirical data. Culture and sub-culture dimensions should be considered for the study. Another qualitative study may also be conducted specifically in one sector to locate the essence of sustainability within one sector. It is a broader nature of research based on many dimensions, so each dimension can be studied empirically. It can be studied at different intervals of time. As qualitative research is always considered to be enriched with data, the role of agile operant resources in enhancing the culture of the firm can also be studied in the future. Future research may be conducted in Asian countries and their ways of developing sustainability in FOBs. In qualitative paradigm, the credibility of the theoretical new emerging concepts is confirmed through triangulation of the data, literature review and peer review process. It is an exploratory and theory development based study. The reliability and validity of qualitative data are the part of the future implications of new-found concepts in the knowledge repository within this area.