Inventory holding strategy and the role of board expertise in family firms: Just-in-case or just-in-time?

We study the inventory-holding strategies of family firms and the role of a "critical mass"of quality directors in shaping these practices. Utilizing a sample of Israeli firms, our findings reveal that family firms, driven by long-term orientation and reputation concerns, often adopt a conservative "just-in-case"(JIC) inventory strategy, particularly in eponymous firms or those with family members as chairpersons. However, when boards have a critical mass of financially proficient directors, these firms tend to shift towards a more efficient "just-in-time"(JIT) inventory approach. This study offers new insights into the influence of family involvement and board composition on inventory management and strategic decision-making in family firms.