LAUSR

Drawing upon the resource-based view and agency theories of family businesses, this study examines the role of strategic planning in developing non-family members’ innovative capabilities and the effect of strategic planning on family businesses’ performance mediated by those capabilities. It was found that strategic planning positively affects the business’ performance, it helps non-family members develop their innovative capabilities which have a positive effect on the performance of the business mediating the relationship between strategic planning and performance. A survey was distributed to Lebanese family businesses for data collection. This study contributes to theory and practice; it suggests more fields of studies and helps family firms’ owners in improving the business’ performance.