To Build or Dissolve Bridges: Generational Disruptions and Legacy in Family Business

Abstract

Family businesses are constantly faced with generational disruptions of all kinds. These generational disruptions can take the form of intra-family conflicts or succession, strategic divergences within the organization, or paradigm shifts at the societal level. They thus can involve family members, stakeholders of the organization or social movements with a broader scope. No matter what form they take or who they concern, generational disruptions can threaten the long-term prosperity of family businesses. This article theorizes the concept of generations and generational disruptions in order to better explain interactions between different types of generations in family businesses. We also explain how legacy (i.e., historical narratives, memory and artifacts) can either function as a bridge to override generational disruptions by creating an impression of continuity or proximity between past, present and future generations, or as an obstructor by creating a sense of discontinuity between generations. This article promises not only to advance explanations of intergenerational dynamics in family businesses, but also to better explain the complex, multifaceted role of legacy in perpetuating (or not) such businesses over time.