Dynamic capabilities and trans-generational value creation in family firms: The role of organizational culture

By Mattias Nordqvist. 2010

361 citations recorded by the source corpus.

While some research on entrepreneurship in family businesses has focused on transgenerational value creation, a gap exists in understanding how such value is generated across generations. The present research offers insights through the lens of dynamic capabilities, which are created by knowledge and in turn generate entrepreneurial performance and value creation. A model is built based on literature and case research. The crucial role of the organizational culture emerges through the empirical study. Family inertia is considered to be a factor preventing the creation of dynamic capabilities. We find that family inertia depends on characteristics of the family business culture, where paternalism and entrepreneurial orientation influence family inertia positively and negatively, respectively. Family firms from Switzerland and Italy active in the beverage industry represent the empirical context. Theoretical and practical implications are offered.

Subfields: Accounting, Management of Technology and Innovation, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/90bfae9c0e3265406d557b7c97cea45bb3002714

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Citations in the corpus

Does Size Matter? The Moderating Effects of Firm Size on the Employment of Nonfamily Managers in Privately Held Family SMEs (2016, background): “Furthermore, family firms that are reliant on nonfamily managers may be less capable in transferring firm-specific tacit knowledge to potential family successors (Chirico & Nordqvist, 2010).”
Planning for Growth: Life Stage Differences in Family Firms (2013, neutral): “In accord with research on family dynasties (Jaffe & Lane, 2004) and generations (Chirico & Nordqvist, 2010; Cruz & Nordqvist, 2012), an underlying premise of the current study is that growth is necessary to sustain an organization across generations.”
Knowledge Internalization and Product Development in Family Firms: When Relational and Affective Factors Matter (2016, background): “16 In line with this prediction, Chirico and Nordqvist (2010) found that family firms’ ability to”
Owner‐Management, Firm Age, and Productivity in Italian Family Firms (2014, background): “social capital, dynamic capabilities, and value creation (Salvato, Chirico, and Sharma 2010), other authors suggest that the family firm is a form of governance that may enable such actions (among others, see Arregle et al. 2007; Chirico and Nordqvist 2010; Chirico et al. 2011; Sirmon and Hitt 2003)”
Innovation with Limited Resources: Management Lessons from the German Mittelstand (2018, background): “Transgenerational entrepre- neurship (Chirico and Nordqvist, 2010; Sieger, Zellweger, Nason, and Clinton, 2011) RQ #2D: How do the capabilities for innovating with limited resources evolve over time?”
Entrepreneurship and Family Firm Research: A Bibliometric Analysis of An Emerging Field* (2016, background): “The analysis of the influence of the organizational culture of family firms in their innovative behavior is the central theme of the fourth line identified (Chirico and Nordqvist 2010; Heck 2004; Zahra, Hayton, and Salvato 2004), which is emerging and poorly developed.”
A farewell to the business: Championing exit and continuity in entrepreneurial family firms (2010, background): “First, we highlight the critical importance of the overlooked topic of business exit in trans-generational entrepreneurship (Habbershon and Pistrui 2002 ; Salvato and Melin 2008 ; Chirico and Nordqvist 2010 ).”
How Familial Is Family Social Capital? Analyzing Bonding Social Capital in Family and Nonfamily Firms (2018, background): “Family firms are said to be good at both possessing knowledge and integrating it (Chirico & Nordqvist, 2010; Patel & Fiet, 2011).”
Empirical research on entrepreneurial orientation: An assessment and suggestions for future research (2013, background): “For example, recent case-based research suggests that EO may reduce tendencies toward inertia within family firms (Chirico and Nordqvist, 2010).”
Resource orchestration in family firms: investigating how entrepreneurial orientation, generational involvement, and participative strategy affect performance (2011, methodology): “…1997)—is needed as a coordinating mechanism not only to avoid confl ict and poor information fl ows accompanying increased generational involvement (Chirico and Nordqvist, 2010; Eddleston and Kellermanns, 2007; Ling and Kellermanns, 2010; Mazzola, Marchisio, and Astrachan, 2008; Miller et al.,…”