Assessing long-term orientation among founder- and descendant-led firms

Abstract

Purpose The purpose of this paper is to explore how family firms in general, and founder- and descendant-led firms in particular, espouse long-term oriented goals of continuity, perseverance and futurity in their narratives. Design/methodology/approach Primary data from 11 founder-led and 13 descendant-led family firms from Austria was collected in a narrative setting for a better understanding of their long-term orientation. Content analysis via the help of atlas.ti was employed. Findings Findings suggest that family firms anchor decision-making with a constant awareness of their past, incorporate anticipation in decision-making and exhibit patience for investment. However, even though family firms jointly emphasize a long-term orientation, they approach it differently. Founder-led family firms put the founder and its family central to business decisions, emphasize idea development and admit their own mulishness. Descendant-led family firms attempt to maintain the business over generations, believe in the importance to develop new projects and target a sturdy development of the firm. Originality/value Family firms often have been accorded a certain long-term strategic orientation. However, what is missing from prior research is a more nuanced understanding of the LTO construct, as well as the heterogeneity of family firms in this regard. The findings contribute to extant research by showing how LTO is expressed in family firm narratives, providing a better understanding of the LTO construct, an omnipresent characteristic frequently used in family firm literature.