Entrepreneurial Forms: a Continuum for NGFM

Abstract

Purpose - The purpose of this research is to study the entrepreneurial trajectory of next generation family members (NGFM) as a basis for differentiating the contexts that drive the emergence of various entrepreneurial forms in family firms.The research question is: how the FF context influences the emergence of different entrepreneurial forms. Design/method/approach - To answer the research question, we conducted qualitative research focused on the Grounded Theory method that aims to build a theory upon empirical evidence. We collected data from 22 semi-structured interviews that asked NGFM about the history of their FF and their role within it. Findings - We propose a model that is a continuum of entrepreneurial forms and consists of internal new venture, family entrepreneurial portfolio, and independent new venture. The NGFM were classified under those 3 categories depending on their entrepreneurial activity and the organizational arrangement that the entrepreneurship took place in the economy. Also, there is a fourth form called the follower role which correspond to the reference point form non-entrepreneurship, it dictates the dynamics that FF have to overcome so that it can be entrepreneurial. Each FF and NGFM is able to engage in more than one entrepreneurial form simultaneously or consecutively, the background that influence the development of one or another entrepreneurial form is determined by the FF and the family dynamics. The proposed model is a continuum since the trajectory of NGFM is also an entrepreneurial learning path that have an adaptative character over time. The variables used for the analysis were: family unit, impact intention scope, creation of need, inclusiveness of decisions, paternalistic culture and informal team building. The most relevant insight about these variables is that the uniqueness of entrepreneurial forms is given by the combination of them in different levels of intensity among cases, this allowed us to address the complexity of the cases and a broader comprehension of each entrepreneurial form. Research implications – While it has a limited number of entrepreneurial forms included in the model it invites to analyse the dynamics that precede entrepreneurship in FF, especially in an individual manner addressing the complexity of the family and firm interactions. Practical implications – Insights from this research are useful for family firms to shape their dynamics in order to enable the formation of determined entrepreneurial forms. Also, it is important for education in entrepreneurship and family firms since it transcends the classic view of family as the only background of family firms and offer a more comprehensive view of FF backgrounds and entrepreneurial forms emergence. Originality and value – this paper highlights the importance of analysing the dynamics that precede entrepreneurial forms, and mainly to do it in a detailed way, avoiding generalizations about family firms and providing a continuum model with the whole overview. Keywords – Entrepreneurship, Family Business, Entrepreneurial forms