Family names are significant elements of luxury brand building, particularly in family-owned enterprises, where a close relationship exists between the family, the owner, and the brand. However, the strategic implications of family names as value-creating factors and as sources of reputational exposure have to date been scarcely examined theoretically. This research seeks to answer the following question: How does the family name function simultaneously as a strategic resource and a source of reputational exposure in the case of family-owned luxury firms? Drawing on the resource-based view and on socio-emotional wealth theory, the research design follows a convergent, abductive, multi-method qualitative research approach, comprising a PRISMA-compliant systematic literature review (n = 50), 6 expert interviews and 4 comparative case studies. Four dimensions emerged from the results of the research: heritage capital, reputational exposure, identity and narrative control, and generational factors. The research highlights that the value of the family name requires the establishment of a balance between credibility and exposure in the digital environment. Based on the findings, the ‘Family Name Duality Framework’ is proposed, which distinguishes three strategic configurations: the traditionalist, the reinterpretive and the separatist. The results complement the literature by reconceptualising the family name as a contingent asset and by connecting brand strategy and governance in the context of luxury family businesses.

What happens when a luxury brand’s name is also a family name? The examples of Hermès, Brunello Cucinelli, and Valentino show that a family name represents both immense value and significant risk for a company. Our research examines how this duality plays out in the case of family-owned companies in the luxury fashion industry. The study is based on a literature review, interviews with industry experts, and case studies of luxury brands. In the luxury industry, a family name is a powerful symbol of tradition, authenticity, and quality. At the same time, the behavior or conflicts among family members can directly impact the brand’s reputation, especially in the age of social media. The research identifies three strategies for managing the family name: some brands focus on family heritage, others reinterpret it through modern communication, while a third group tends to downplay the family name to mitigate reputational risk. The main takeaway: a family name becomes a true competitive advantage when the company is able to strike a balance between the power of tradition and reputational risks.