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

Abstract

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.

Navigating job satisfaction in family firms during crisis

“…Other studies have shown strategies and mechanisms developed by family firms to navigate financial distress and minimal financial rewards ( Glover and Reay, 2015 ). More recently, research has informed on the mechanisms, strategic logic, and motivations behind a family firm’s strategic evolution to support sustainable longevity ( Welsh et al, 2023 ). Our study suggests that job satisfaction is critical for these firms’ resilience and continuity.…”