Transgenerational Entrepreneurship of the Family Businesses: Is it in the Blood or Not?

Abstract

This paper aims to understand the transgenerational entrepreneurship process in family businesses. Method: This study was based on a qualitative research using three focus groups. Originality/Relevance: Aspects related to the intergenerational entrepreneurship in the context of family businesses have drawn the attention of researchers who focus both on family businesses and entrepreneurship. Therefore, it is relevant to analyze how entrepreneurship occurs across generations in order to overcome the simplification of research on entrepreneurship in the context of family business. Results: This study allowed understanding the similarities and differences of transgenerational entrepreneurship in family businesses regarding five topics: relevance of the founder, challenges, governance, and influence of the heirs who are not involved in managing the family businesses. Theoretical/methodological contributions: The study presents propositions with the aim to integrate entrepreneurship in the context of family businesses while highlighting the role of founders, heirs, their challenges and governance practices.

Intra-family succession insights: the presence of millennial cohort successors

“…It is not merely favoritism of the predecessor. These findings contradict the Monticelli et al (2019) which argues that professionalization is difficult to carry out in family firm since family members usually occupy high managerial positions with less appropriate qualification.…”

“…Resources such as social capital, human capital and the ability to survive are the advantages of family firms compared to non-family firms (Miller et al , 2016). Therefore, family governance has proven to be helpful in formulating ownership of family members, developing norms and procedures that are able to ensure the sustainability of business across generations (Monticelli et al , 2019).…”

“…Another concept which arised recently is professionalism. Monticelli et al (2019) argued that the barrier of professionalism implementation is many family members enjoy the position as managerial position with less qualification. Family role. Family is also viewed as institution and context which is derived from the view of social context (Le Breton Miller et al , 2004).…”

“…Moreover, entrepreneurial activities viewed as the main element support family entrepreneurial orientation (Memili et al , 2013). Family also plays role in formation of family governance (Monticelli et al , 2019), family council (Lane et al , 2006) and family cohesion (Jaskiewicz et al , 2015). These three formations ensure sustainability across generation.…”

“…Another concept which arised recently is professionalism. Monticelli et al (2019) argued that the barrier of professionalism implementation is many family members enjoy the position as managerial position with less qualification.…”