Managerial Human Capital and Patient Capital

Managerial human capital depicts the skills and knowledge repertoire of a focal E.F.SME's top management team (i.e., long-serving family CEOs, together with their non-family senior functional-level managers), as shaped by their educational, personal, and professional experiences. Both family and non-family management perspectives are incorporated to enable a deeper understanding of the investigated phenomena, particularly as influenced by the seemingly idiosyncratic management practices of the top management team (TMT) within these enterprises (Cherchem, 2017; Chua et al., 1999;). In this regard, long-serving family CEOs within E.F.SME's tend to possess notable amounts of deep familiarity with their enterprise's operations and accompanying core competencies as influenced by their unprecedented lengthy tenures, which on average, last for approximately twenty years. This is for instance, a far cry, in comparison to their non-family enterprise competitors that comparatively have much shorter tenures, which on average, last for approximately four to eight years (Khurana, 2003; Miller & Le Breton-Miller, 2005). As such, E.F.SME's would potentially be furnished with a more heightened competitive edge, under these prevailing circumstances. As a result, this outlook would mostly likely enable E.F.SME's to establish substantive effective management regimes and as such ascertain the likelihood of achieving sustained entrepreneurial growth.

Subsequently, long-serving family CEOs within these enterprises are usually more adept at adequately socialising their non-family senior functional-level managers into the enterprise – in comparison to their rivals. As a consequence, overall tacit family CEOs and non-family senior functional-level managers team know-how would likely be preserved within the enterprise for a prolonged period of time – resulting in heightened positive team dynamics. In this way, coupled with their pervasive flat organisational structures, these enterprises are likely to be in an auspicious capacity of effectively managing their accessed new market and technological knowledge resources (in tacit and explicit form) derived from their varied alliance portfolio partners. This disposition therefore results in a better-trained and highly motivated workforce that is more productive and performs broader arrays of tasks - with minimised supervision. Consequently, a focal E.F.SME would be able to leverage its perceived patient capital to ensure the likelihood of successfully enhancing sustained entrepreneurial growth.

Patient capital depicts a deliberate preference for unusual and notably extensive long-term oriented investments (usually lasting several decades) with the desire to perpetuate vibrant businesses across several generations. Comparatively, their non-family enterprise competitors usually embrace much shorter investment time horizons, which predominantly occur due to varied pressures that are predominantly related to obtaining short-term oriented results - as demanded by key inherent shareholders.

In this view, possessing the discretion to formulate and implement a long-term investment horizon tends to stymie the possibility of liquidation, and enables E.F.SMEs to pursue innovative strategies such as being capable of building the requisite dynamic alliance portfolio management capabilities required for – enhancing the likelihood of achieving sustained entrepreneurial growth growth. This resulting undertaking is in light of the inherent managerial human capital within a focal E.F.SME that would interact in sync with its perceived prevalent patient capital therein, to enhance the enterprise's success in actualising these vital strategic activities .

Following the aforementioned, establishing R.OSC in light of its managerial human capital and patient capital dimensions - would act as a key underlying foundational isolating mechanism for building an idiosyncratic enterprise-level micro-foundation of dynamic alliance portfolio management capabilities. This developed idiosyncrasy is representative of superior Absorptive Capacity (ACAP), whereby E.F.SMEs tend to amplify the effective management of the accessed new market and technological knowledge resources (in tacit and explicit form) derived from their varied alliance portfolio partners.