Transgenerational Entrepreneurship Research Articles

An investigation of the masculinity of entrepreneurial orientation in family business

PurposeMiller (2011) revisited his influential 1983 work on entrepreneurial orientation (EO) and remarked that its underlying drivers are fully open to debate, fresh scholarship and connection with new theories. Indeed, the genealogy of the EO construct is rarely questioned. We take a “making masculinity visible” approach, engaging with a lens of masculinity, precarious manhood theory (PMT) and double standards of competency, to define and test the masculine elements of EO in the setting of family business CEOs.Design/methodology/approachUsing the 2019 Successful Transgenerational Entrepreneurship Project (STEP) dataset, a comprehensive database of family business chief executive officers (CEOs), we examined the construct of EO, in whole and in its masculine elements. Stepwise multiple regression method was used to test the hypotheses of this study. Control variables entered the equation first, followed by the variable of interest for this study.FindingsWe find differences by gender when EO is tested as a whole construct. Further in testing its masculine dimensions, we find that being male is significant to the elements of autonomy and competitive aggressiveness and that gender is not significant to risk-taking.Originality/valueAlthough research on the widespread and influential EO continues to proliferate (Covin and Wales, 2019), there is not an understanding of its applicability across genders (Fellnhofer et al., 2016). It is possible that EO may not explain how women do business. Our study contributes to the understanding of between-gender differences in EO, and our findings suggest that the masculine elements of EO vary by gender.

Leadership Succession and Transgenerational Entrepreneurship in Family Firms: an Evolutionary Perspective of Familiness

This article analyses how familiness influences the evolution of entrepreneurial actions undertaken by new-generation family leaders. Despite the recognised importance of familiness in family firms’ entrepreneurship, the mechanism by which it influences transgenerational entrepreneurship during leadership succession remains largely unexplored. Through qualitative analysis of the entrepreneurial processes carried out by five multigenerational family firms, we identify how resources associated with familiness shape strategic renewal and their evolution across the transgenerational entrepreneurship process. Our results shed light on the critical role of leaders’ managerial capabilities in orchestrating the resources of family firms and engaging key stakeholders to support entrepreneurial ventures and growth opportunities. Among the practical contributions, the article offers a set of strategies for assisting new leaders of family firms in their entrepreneurial pursuits.

Innovation and Family Business in the Digital Age: A Systematic Literature Review

Objective: Identify the factors, characteristics, strengths, challenges, and opportunities that are required in family businesses (FB) to face innovation in the digital age. Theoretical Framework: Reviewed information on the development of family businesses in the digital age and the needs for innovation. Method: An exploratory study was carried out, for the analysis and selection of information, the PRISMA method and hermeneutics were used; In addition, publications from the last five years (2019-2023) from repositories such as Web of Science, Scopus, ScienceDirect, among others, were included. Likewise, the review of 55 scientific articles has been systematized using MS Excel software. Results and discussion: The factors were trends, consumer preferences, increasing competition, internal competencies and business model knowledge. Characteristics highlighted were transgenerational entrepreneurship, values and new forms of digital integration at kinship and genealogy level. Strengths were the ethical attitude, trust, identification and involvement of family management. Challenges were the digitalization of companies, the use of ICT, unlocking the conservative mentality and the defamiliarization of the company. Research Implications: It demonstrates the need to include FBs in the economic theory for study, as well as the consideration of practical specificities for their sustainable development. Originality/value: This study contributes to the literature to proceed with the innovation of a family business in the digital age, considering factors, characteristics, strengths, challenges and opportunities within an innovation ecosystem.

Entrepreneurial orientation and socioemotional wealth as enablers of the impact of digital transformation in family firms

PurposeThe research aims to investigate how digital transformation (DT), entrepreneurial orientation (EO) and socioemotional wealth (SEW) impact the financial performance of family firms in uncertain business environments. Drawing from existing literature, we propose that DT and EO drive firm performance. Additionally, we suggest a new role for SEW, which positively moderates this relationship in family firms, especially in terms of risk behavior and innovation for survival.Design/methodology/approachWe used the STEP Consortium’s 2020–2021 database, derived from a global survey that explored how family businesses responded to environmental shocks. Following STEP’s definitions, we proposed three hypotheses and tested two models using structural equation modeling.FindingsThe findings show that EO significantly enhances the impact of DT on family firm performance. Family businesses exhibit a notable willingness to take strategic venture risks to protect their SEW. These findings align with conclusions drawn in related literature, supporting all hypothesized relationships proposed.Practical implicationsThe study has made an applied contribution by challenging the misconception that family firms are outdated and provides insights into supporting their approach to entrepreneurship, innovation and transgenerational entrepreneurship. Furthermore, it provides business families and consultants with a new view of SEW as a strategic asset.Originality/valueOur study adds to the literature by showing how entrepreneurial orientation catalyzes the positive impact of digital transformation on firm financial performance. We also highlight the contextual influence on family firm decision-makers' risk propensity, which affects SEW development and firm outcomes. This context dependency of SEW can hinder or enhance performance, offering new research and support avenues for family firms.

The Effects of Trans-generational Conflict on Trans-generational Entrepreneurship Performance from the Perspective of First-generation Entrepreneurs’ Networks: Evidence from China

After more than four decades of China’s reform and opening up, many family businesses in China are welcoming the peak of trans-generational inheritance. Therefore, more research is needed to help the second-generation successors avoid the potential negative effect of trans-generational conflicts and keep and maintain the sustainable development of their family businesses. To fill these gaps in the literature, this paper explores the impact of trans-generational conflicts on trans-generational entrepreneurial performance and investigates the moderating role of first-generation entrepreneurs’ business and social networks. Based on a survey data captured from the 221 matched responses from founder and second-generation successors dyads in China, we found that both cognitive and process conflicts have negative effects on trans-generational entrepreneurial performance, and process conflict has a greater negative impact than cognitive conflict. Furthermore, we found that the first-generation entrepreneurs’ business and social networks independently alleviate the negative impact of cognitive conflict on trans-generational entrepreneurial performance. By examining the three-way inaction effect, we also found that the negative effect of process conflict on trans-generational entrepreneurial performance is alleviated. Theoretical and managerial implications are also provided.

Transmission of entrepreneurial identity across generations in business families: Understanding the effect of family communications

ABSTRACT Business families aspire to nurture entrepreneurial characteristics of their later generations to ensure the prosperity of their families and businesses. Given that individuals’ identities direct their behaviors and that their social contexts and, most importantly, their families shape individuals’ identities, we develop a theoretical framework to explain the intergenerational transmission of entrepreneurial identity in business families. More specifically, we explain the role of emotions resulting from parent-entrepreneurs’ identity enactment on their children’s entrepreneurial identity formation. Furthermore, our conceptual model accounts for the role of family communication patterns in facilitating the effects of parents’ emotions on children’s identity formation. Overall, our paper extends our understanding of transgenerational entrepreneurship and sheds new light on family business succession using a family perspective.

Disentangling family firm heterogeneity: Evidence from a cross-country analysis

The existing typologies, classifications that identify types of family firms based on specific characteristics, aim to enhance our understanding of the heterogeneity of family businesses. However, these typologies fall short in thoroughly exploring and predicting behavioural and performance consequences associated with being categorized within specific classifications. Furthermore, the majority of the existing analyses have been empirically tested in one single country. To address these two research gaps, we use a sample of 814 small- and medium-sized family firms operating in 21 countries, collected by the STEP Project Global Consortium. This sample is employed to classify family firms based on their corporate governance similarities and explore their behavioural and performance patterns. Building on the principles of the configurative approach, we find that each of the four family firm configuration—group of family firms with related corporate governance mechanisms—has a unique yet similar combination of patterns in terms of transgenerational entrepreneurship practices, non-economic goals, and firm performance. Additionally, expanding on the isomorphic effect, we find evidence indicating that certain world macroregions exhibit a greater propensity for specific corporate governance configurations compared to others.

Women in the family business: self and family's influence on their perceptions of financial performance

PurposeThis study examines how women and men in family firms respond differently when asked about perceptions of financial performance. The study poses three research questions around this topic: Are there differences among female and male responses, do those perceptions change if men and women are leaders of the family business and does the family's socioemotional wealth (SEW) influence such responses.Design/methodology/approachThis study uses a quantitative research design to determine if financial performance perceptions of family firms differ based on the gender of the respondents and their leadership position, and second, if SEW's dimensions influence those perceptions, using data from the Successful Transgenerational Entrepreneurship Practices (STEP) survey in 2015.FindingsThe findings indicate that due to the lack of theory regarding gender as a social construct, empirical data collected for family business studies should take under consideration if respondents are women, men, leaders and the family influence in the family business when collecting data from surveys and asking for perceptions of financial performance. Results show that women in family businesses tend to have more positive perceptions of financial performance than men, but if women are leaders, those perceptions not only decrease but become negative. In addition, the family's socioemotional wealth (SEW) exacerbates those tendencies.Originality/valueThis study contributes to the literature by helping to understand the potential limitations of subjective measures of financial performance, as women increasingly become family business leaders. It also contributes to gender studies by demonstrating that there is a lack of gender theoretical perspectives specifically, gender roles, suggesting that differences in self-promotion and self-evaluation between men and women leaders of their family firms. Finally, this study adds to the study of SEW as a multidimensional construct by showing the different effects, or lack of them by each dimension and showing the strong effect of family continuity on the perception of financial performance.

Effectuation and strategic evolution for sustainable longevity: the case of a 19th-generation family firm

PurposeThis article explains the causal mechanism supporting sustainable longevity by analysing the last three generations of one of the oldest family firms in Latin America.Design/methodology/approachAn explanatory single-case qualitative research based on critical realism explores why and how this family firm has been able to maintain its multigenerational longevity.FindingsLos Lingues's evolutionary strategy, driven by transgenerational entrepreneurship under effectuation, has supported this family firm's sustainable longevity. Its effectual logic emerged mainly from the richness of the firm's historical resources embedded in its identity, knowledge and social capital and priority to preserve socioemotional wealth.Originality/valueThis study integrates socioemotional wealth and effectuation theory to explain a family firm's ability to survive through generations and sustain longevity. The study demonstrates the relevance of effectual logic in the entrepreneurial dynamics of a multigenerational family firm. Effectual logic drives the firm evolution and adaptation for sustainable longevity.

Uncertainty around Transgenerational Control: Implications for Innovation Prior to Succession

The transgenerational entrepreneurship perspective suggests senior-generation leaders with transgenerational control intentions (TCI) innovate to position the next generation for success, but many family firms fail to do so. We introduce transgenerational control uncertainty (TCU) as a theoretical mechanism explaining when TCI enhances innovation behaviors pre-succession. A multi-respondent, multi-time period survey of private German family firms shows that while TCI helps unleash innovation prior to succession, these effects also depend on lowering TCU as reflected in progress through the succession process. Our study suggests TCU might be a useful new construct for explaining other important differences among family firms.

Transgenerational Entrepreneurship Potential Towards the Food Family Businesses’ Sustainability in Langkawi, Malaysia

Transgenerational Entrepreneurship Potential Towards the Food Family Businesses’ Sustainability in Langkawi, Malaysia

Family Business Succession Plan for Bumiputera-Owned Small and Medium Enterprises: A Review

Transgenerational entrepreneurship is defined as the creative and initiative-taking creation of self-sufficiency in a family-owned business that lasts generations. The process of passing on management and ownership of a family business to the next generation through inheritance is known as family business succession. A succession plan is crucial for ensuring the company's transition and continuity. The process of selecting a replacement in a small and medium enterprise (SME) is more difficult because the number of successor candidates is smaller than in a corporate firm. Therefore, the purpose of this study is to identify the challenges and factors that incumbents must consider when selecting a successor and implementing a succession plan. The study's findings indicate that internal conflicts between the leader's business and family, the leader's obsession with his leadership legacy, and the successor's level of willingness to accept responsibility are the main obstacles to implementing a succession plan. The succession planning process considers a variety of factors, including education, competencies, demographic factors, relationships with family members and incumbents, experience, integrity, birth order, and primogeniture.

Narratives of survival: how entrepreneurial families narrate their longevity

PurposeThe question of crisis resistance and resilience of long-lived family businesses became particularly volatile with the beginning of the Corona crisis. In this context the project “Narratives of Survival” was launched focusing on the prevailing narratives to find out how crisis situations have been dealt with and narrated by long-lived German family firms.Design/methodology/approachBased on narrative interviews, the empirical study of transgenerational entrepreneurship was first approached in an open-ended manner. The interview guideline addresses different types of crises and asks about resources, insights, regulations and explanations for the longevity of the family businesses.FindingsIn the qualitative content analysis, 12 guiding narratives were pointed out, providing information about the self-narratives of these entrepreneurial families which revolve around the three themes of self-image, familiarity and strategy.Originality/valueThis study provides information about the secrets of longevity of four very old family firms. The narratives revealed that strengthening the identity of the entrepreneurial family and employees of the family business as well as generating a shared reality, supports constructive handling of challenges and crises. This study contributes to theory by answering calls for narrative analysis in family firms and to practice by showing what younger companies can learn from long-lived family businesses.

Sustainability and interactive network branding in fast‐changing business environments

Sustainability and interactive network branding in fast‐changing business environments

Next‐generation entrepreneurial identity in family business systems: The influence of role‐changing events on the understanding of legacy, individual identity, and transgenerational entrepreneurship of next‐generation family business principals

AbstractThe paper addresses how the understanding of family business legacy, individual identity, and transgenerational entrepreneurship of next‐generation principals is affected by role changing events in family business systems. The paper uses the insights of a focus group of 38 next‐generation family business principals of ultrahigh‐net‐worth business families from 14 countries. It corroborates that parents and role models are influencing factors on the understanding and perception of family identity, values, and transgenerational entrepreneurship. Identity inflection points during moments of expected and unexpected role changes, such as family business succession, can either positively or negatively impact the appreciation of a next‐generation principal regarding legacy, identity, and transgenerational entrepreneurship. Based on the results of the qualitative interviews and peer group discussions, the findings indicate how identity inflection points affect the preservation of the next‐generation family business principal's identity and family identity during a moments of role changes in family businesses and are a bottleneck for transgenerational entrepreneurship.

Transgenerational entrepreneurship in family firms: a configurational approach

Transgenerational entrepreneurship in family firms: a configurational approach

Relationship coordination between successor and top management team in family business under the background of social embeddedness: a case study of trans-generational entrepreneurship

PurposeAiming at the key issue of interpersonal interaction process between successors and top management teams in the context of family business trans-generational entrepreneurship, this paper aims to explore the motivation, action and results of interpersonal conflict between these two subjects mentioned above.Design/methodology/approachThis paper uses grounded theoretical research methods based on the research objects of three family businesses with both inheritance and transformation needs.FindingsMotivation difference, mediation mode and relationship utilization, that is, the successor and top management team take the goal-orientation, interest orientation and rational tendency as the starting point for relationship coordination. Then it mediates the interpersonal conflicts through compromise, collaboration and compliance, and ultimately provide successors with resources, opportunities, capabilities and motivation advantages to promote trans-generational entrepreneurship. Second, the path of relationship coordination comes from the background of social embedding, that is, the motivation difference comes from the embedding of motivation seeking, the mediation mode comes from the embedding of mediation elements and the relationship utilization comes from the embedding of relationship optimization. The research conclusions not only provide a theoretical framework for family businesses to solve the problems of interpersonal conflicts faced by family businesses but also have practical guiding significance for the trans-generational entrepreneurship.Originality/valueThere are two theoretical contributions in this study. First, the research starting point of social embeddedness theory from the perspective of interpersonal relationships at the microlevel is revised. Since Granovetter (Granovetter, 1985) put forward the theory of social embeddedness, its research scope has been gradually expanded, but the mainstream research in the past focused on analyzing the social network embeddedness of enterprises to obtain social capital from the macro- and meso-level (Nahapiet and Ghoshal, 1998). In fact, this may deviate from the essential interpretation of Granovetter’s theory of social embeddedness, while this study returns to the study of interpersonal relationships. Second, a theoretical model of relationship coordination for successors and top management team is put forward in general. On the basis of the motivation, action and result of interpersonal interaction between the successor and top management team, the interpersonal coordination action path and embedded logic during trans-generational entrepreneurship of family businesses are revealed, which enriched the research scope of social embedded theory in family business.

Owners as Strategists - Four Types of Strategist Identity of Owner-Managers in Family Businesses

As ultimate strategic decision-makers, owner-managers in family businesses face paradoxical tensions of the complementary yet different strategic needs of the business family and the family business in their strategy work. The goal of this study is to explore owner-managers’ self-understandings as strategists in relation to the opposing poles stemming from the business family and the family business. We draw on identity theory to explain how owner-managers understand themselves as strategists in terms of who they are and how they should act to navigate these tensions. Building on rich data collected in focus groups and enriched by reflexive data points, we identify that owner-managers’ identity as strategists vary along the two dimensions of integration and dissociation of the business family and preservation and change of the family business. Given the heterogeneity of their positioning, we find four different strategist identities: the family business actionist, the family business innovator, the family business steward, and the family business orchestrator. We contribute by offering empirical insights into owners as strategists in family businesses and by discussing implications for research on transgenerational entrepreneurship as well as differences in innovation behavior in family firms.

Family social capital as a driver to leverage challenged transgenerational entrepreneurship

PurposeThe purpose of the study is to unveil the key role of family social capital (FSC) as a driver for transgenerational entrepreneurship (TE) in the specific contexts of challenged successor-driven entrepreneurship.Design/methodology/approachThe paper adopts a multi-case study methodology. Guided by three theoretical propositions, three TE case studies are analyzed. Drawing on ten in-depth interviews with at least three different informants from each intra-family succession case study, evidence about this particularly complex phenomenon was obtained.FindingsThe paper highlights the effect of FSC as the key familiness driver to leverage challenged successor-driven entrepreneurship. The paper underscores the systemic and dynamic network of multiple exchanges required to construct successor’s own pool of knowledge resources and to support familiness and thus the competitive advantage of the family firm (FF).Practical implicationsDifferent scenarios are illustrated, and specific lessons are provided for successors and families that face TE opposition in intra-family succession, regarding the restoration of damaged FSC and involving non-family stakeholders in the successor-driven entrepreneurship. In these cases, opposition to successor-driven entrepreneurship may help to develop successor’s leadership abilities.Originality/valueFocusing on a specific intra-family succession context where successor-driven entrepreneurial initiatives face stakeholder opposition, the paper highlights the specific role played by FSC in the successor knowledge construction in specific contexts of challenged intra-family succession.

Corporate Governance Patterns in Family Firms Around the World

Family business literature has offered different typologies and taxonomies to examine family firm heterogeneity, however the extant research has focused on the mere descriptive classification without analyzing behavioral patterns of the different types of family firms. Even more, most of the existing classifications are empirically tested in one single country. To address these two research gaps, we draw on the theoretical configurative approach and use the Successful Transgenerational Entrepreneurship Practices (STEP) international dataset to explore different family firm configurations based on the combination of business and family governance practices. For each type of family firms, we analyze their transgenerational entrepreneurship practices, non-economic goals, and firm performance patterns. Additionally, stemming from institutional isomorphic approach, we theoretically argue and empirically found evidence that there are governance configurations more prone in some countries than others.