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

Jefferson Marlon Monticelli; Renata Araujo Bernardon; Guilherme Trez; Carlos Eduardo dos Santos Sabrito

doi:10.14211/regepe.v8i2.1139

Authors

Jefferson Marlon Monticelli Escola de Administração de Empresas de São Paulo na Fundação Getulio Vargas - FGV/EAESP. Universidade Unilasalle, Rio Grande do Sul. https://orcid.org/0000-0002-1605-7090
Renata Araujo Bernardon Pontifícia Universidade Católica - PUC, Rio Grande do Sul.
Guilherme Trez Universidade do Vale do Rio dos Sinos, Unisinos https://orcid.org/0000-0001-8782-7681
Carlos Eduardo dos Santos Sabrito Universidade Unilasalle, Rio Grande do Sul. https://orcid.org/0000-0003-1450-0738

DOI:

https://doi.org/10.14211/regepe.v8i2.1139

Keywords:

Entrepreneurship, Family Businesses, Transgenerational Entrepreneurship, Focus Group

Abstract

Objective: 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.

Downloads

Download data is not yet available.

Author Biographies

Jefferson Marlon Monticelli, Escola de Administração de Empresas de São Paulo na Fundação Getulio Vargas - FGV/EAESP. Universidade Unilasalle, Rio Grande do Sul.

Doutor em Administração pela Universidade do Vale do Rio dos Sinos - UNISINOS, São Paulo, (Brasil).

Renata Araujo Bernardon, Pontifícia Universidade Católica - PUC, Rio Grande do Sul.

Doutora em Administração pela Universidade do Vale dos Sinos - UNISINOS, São Paulo, (Brasil). Diretora de Educação Continuada da Pontifícia Universidade Católica - PUC, Rio Grande do Sul.

Guilherme Trez, Universidade do Vale do Rio dos Sinos, Unisinos

Doutor em Administração com ênfase em Marketing pela Universidade Federal do Rio Grande do Sul UFRGS, Rio Grande do Sul, (Brasil). Coordenador do Mestrado Profissional em Gestão e Negócios da Universidade do Vale do Rio dos Sinos - UNISINOS, São Paulo.

Carlos Eduardo dos Santos Sabrito, Universidade Unilasalle, Rio Grande do Sul.

Doutor em Informática na Educação pela Universidade Federal do Rio Grande do Sul - UFRGS, Rio Grande do Sul, (Brasil).

References

Amorós, J., Bosma, N., & Levie, J.D. (2013). Ten years of global entrepreneurship monitor: accomplishments and prospects. International Journal of Entrepreneurial Venturing, v. 5, n. 2, pp. 120-152.

Anderson, A. R., Jack, S. L., & Dodd, S. D. (2005). The role of family members in entrepreneurial networks: Beyond the boundaries of the family firm. Family Business Review, v. 18, n. 2, pp. 135-154.

Antheaume, N., Robic, P., & Barbelivien, D. (2013). French family business and longevity: Have they been conducting sustainable development policies before it became a fashion? Business History, v. 55, n. 6, pp. 942-962.

Aronoff, C. (2004). Self-Perpetuation Family Organization Built on Values: Necessary Condition for Long-Term Family Business Survival. Family Business Review, v. 17, n. 1, pp. 55-59.

Bardin, L. (2011). Análise de conteúdo. Lisboa: Edições 70.

Basco Rodrigo, J. T. (2006). La Investigación En La Empresa Familiar: "Un Debate Sobre La Existencia De Un Campo Independiente". Investigaciones Europeas de Dirección y Economía de la Empresa [en linea] 12 (Enero-Abril). Available in: <http://www.redalyc.org/articulo.oa?id=274120878002>. Access in: 12 set. 2018.

Benavides-Velasco, C. A., Guzmán-Parra, V., & Quintana-García, C. (2011). Evolución de la literatura sobre empresa familiar como disciplina científica. Cuadernos de Economía y Dirección de la Empresa, v. 14, n. 2, pp. 78-90.

Bettinelli, C., Fayolle, A., & Randerson, K. (2014). Family entrepreneurship: a developing field. Foundations and Trends in Entrepreneurship, v. 10, n. 3, pp. 161-236.

Bonti, M., & Cori, E., (2013). Intergenerational passages and firm longevity: evidence from Italian family SMEs, in AA.VV., The firm’s role in the economy. Does a growth-oriented model exist? Bari: Cacucci Editore.

Carney, M., Gedajlovic, E., & Strike, V. M. (2014). Dead Money: Inheritance Law and the Longevity of Family Firms. Family Business Special Issue, v. 38, n. 6, pp. 1261-1283.

Casillas, J. C., Moreno, A. M., & Barbero, J. L. (2010). A configurational approach of the relationship between entrepreneurial orientation and growth of family firms. Family Business Review, v. 23, n. 1, pp. 27-44.

Chua, J. H., Chrisman, J. J., & Bergiel, E. B. (2009). An agency theoretic analysis of the professionalized family firm. Entrepreneurship Theory and Practice, v. 33, pp. 355-372.

Chang, E. P. C., Memili, E., Chrisman, J. J., Kellermanns, F. W., & Chua, J. H. (2009). Family social capital, venture preparedness, and start-up decisions: a study of Hispanic entrepreneurs in New England. Family Business Review, v. 22, n. 3, pp. 279-292.

Chrisman, J. J., Chua, J. H., & Sharma, P. (2005), Trends and Directions in the Development of a Strategic Management Theory of the Family Firm. Entrepreneurship Theory and Practice, v. 29, n. 5, pp. 555-576.

Chrisman, J. J., Sharma, P., Steier, L., & Chua, J. H. (2013). The Influence of family goals, governance, and resources on firm outcomes. Family Business Special Issue, v. 37, n. 6, pp. 1249-1261.

Chua, J. H., Chrisman, J. J., & Sharma, P. (1999). Defining the Family Business by Behavior. Entrepreneurship Theory and Practice, v. 23, n. 4, pp. 19-39.

Chung, H., & Gale, J. (2009). Family Functioning and Self-Differentiation: A Cross-Cultural Examination. Contemporary Family Therapy, v. 31, n. 1, pp. 19-33.

Collis, J., & Hussey, R. (2009). Business Research: A Practical Guide for Undergraduate and Postgraduate Students. New York: Palgrave McMillan.

Cruz, A. D., Hamilton, E., & Jack, S. L. (2012). Understanding entrepreneurial cultures in family businesses: A study of family entrepreneurial teams in Honduras. Journal of Family Business Strategy, v. 3, n. 3, pp. 147-161.

Dalla Costa, A. J. (2009). Sucessão e sucesso nas empresas familiares (2. ed). Curitiba: Juruá.

Davis, J. A. (2001). The Three Components of Family Governance. Research & Ideas: HBS Working Knowledge. Available in: <http://hbswk.hbs.edu/ item/2630.html>. Access in: 11 jun. 2018.

Davis, P. S., & Harveston, P. D. (2000). Internationalization and organizational growth: The impact of internet usage and technology involvement among entrepreneur-led family businesses. Family Business Review, v. 13, n. 2, pp. 107-120.

De Falco, S. E., & Vollero, A. (2015). Sustainability, longevity and transgenerational value in family firms. The case of Amarelli. Sinergie, Italian Journal of Management, v. 33, n. 97, pp. 291-309.

De Massis, A., Chua, J., & Chrisman, J. (2008). Factors Preventing Intra-Family Succession. Family Business Review, v. 21, n. 2, pp. 183-199.

Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, v. 14, n. 4, pp. 532-550.

Evert, R. E., Martin, J. A., McLeod, M. S., & Payne, G. T. (2016). Progress, Challenges, and the Path Ahead. Empirics in Family Business Research, v. 29, n. 1, pp. 17-43.

Feltham, T. S., Feltham, G., & Barnett, J. J. (2005). The Dependence of Family Businesses on a Single Decision-Maker. Journal of Small Business Management, v. 43, n. 1, pp. 1-15.

Fernández Pérez, P., & Puig Raposo, N. (2007). Bonsais in a Wild Forest? A Historical Interpretation of the Longevity of Large Spanish Family Firms. Revista De Historia Económica / Journal of Iberian and Latin American Economic History, v. 25, n. 3, pp. 459-497.

Gaskill, L. (2001). A qualitative investigation into developmental relationships for small business apparel retailers: Networks, mentors and role models. The Qualitative Report, v. 6, n. 1. Available in: <http://www.nova.edu/ssss/QR/QR6-3/gaskill.html>. Access in: 12 feb. 2018.

Giovannoni, E., Maraghini, M. P., & Riccaboni, A. (2011). Transmitting Knowledge Across Generations: The Role of Management Accounting Practices. Family Business Review, v. 24, v. 2, pp. 126-150.

Goel, S., & Jones III, R. J. (2016). Entrepreneurial Exploration and Exploitation in Family Business: A Systematic Review and Future Directions. Family Business Review, v. 29, n. 1, pp. 94-120.

Hernández-Linares, R., & López-Fernández, M.C. (2018). Entrepreneurial Orientation and the Family Firm: Mapping the Field and Tracing a Path for Future Research. Family Business Review, v. 31, n. 3, pp. 318-351.

Hisrich, R. D., & Peters, M. P. (2002). Entrepreneurship (5. ed). Boston: Irwin/McGraw Hill.

Hitt, M. A., Ireland, R. D., Sirmon, D. G., & Trahms, C. A. (2011). Strategic entrepreneurship: creating value for individuals, organizations, and society. Academy of Management Perspectives, v. 25, n. 2, pp. 57-75.

Huybrechts, J., Voordeckers, W., & Lybaert, N. (2013). Entrepreneurial risk taking of private family firms: the influence of a nonfamily CEO and the moderating effect of CEO tenure. Family Business Review, v. 26, n. 2, pp. 161-179.

Ibrahim, A. B., McGuire, J., & Soufani, K. (2009). An empirical investigation of factors contributing to longevity of small family firms. Global Economy & Finance Journal, v. 2, n. 2, pp. 1-21.

Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A Model of Strategic Entrepreneurship: The Construct and its Dimensions. Journal of Management, v. 29, n. 6, pp. 963-989.

Jaskiewicz, P., Combs, J., & Rau, S. (2015). Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship. Journal of Business Venturing, v. 30, n. 1, pp. 29-49.

Kayser, G., & Wallau, F. (2002). Industrial Family Businesses in Germany-Situation and Future. Family Business Review, v. 15, n. 2, pp. 111-115.

Kellermanns, F. W., Eddleston, K. A., Barnett, T., & Pearson, A. (2008). An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review, v. 21, n. 1, pp. 1-14.

Kraatz, M. S., & Block, E. S. (2008). Organizational implications of institutional pluralism. In: R. Greenwood, C. Oliver, K. Sahlin, & R. Suddaby (Eds.) The SAGE handbook of organizational institutionalism. (pp. 243-275). London: Sage.

Krueger, R. A. (1994). Focus groups: A practical guide for applied research. 2. ed. Thousand Oaks, CA: Sage Publications.

Labaki, R., Michael-Tsabari, N., & Kay Zachary, R. (2013). 31 Emotional dimensions within the family business: towards a conceptualization. In: K. X. Smyrnios, P. Z. Poutziouris, & S. Goel. Handbook of Research in the Family Business (2. ed., Chapter 31, pp. 734-763). Cheltenham, UK: Elgar Publishing.

Laspita, S., Breugst, N., Heblich, S., & Patzelt, H. (2012). Intergenerational transmission of entrepreneurial intentions. Journal of Business Venturing, v. 27, n. 4, pp. 414-435.

Litz, R. A. (2008). Two Sides of a One-Sided Phenomenon: Conceptualizing the Family Business and Business Family as a Möbius Strip. Family Business Review, v. 21, n. 3, pp. 217-236.

Litz, R., Pearson, A., & Litchfield, S. (2012). Charting the future of family business research: perspectives from the field. Family Business Review, v. 25, n. 1, pp. 16-32.

Memili, E., Misra, K., Chang, E. P. C., & Chrisman, J. (2013). The propensity to use non-family managers compensation in family firms. Journal of Family Business Management, v. 3, n. 1, pp. 62-80.

Merton, R., Fiske, M., & Kendall, P. L. (1956). The Focused Interview: A report of the bureau of applied social research. New York: Columbia University.

Michael-Tsabari, N., Labaki, R., & Zachary, R. K. (2014). Toward the Cluster Model: The Family Firm's Entrepreneurial Behavior Over Generations. Family Business Review, v. 27, n. 2, pp. 161-185.

Miller, D., Lebreton-Miller, I., & Lester, R. H. (2011). Family and lone founder ownership and strategic behaviour: social context, identity, and institutional logics. Journal of Management Studies, v. 48, n. 1, pp. 1-25.

Miller, D., Steier, L., & Le Breton-Miller, I. (2016). What can Scholars of Entrepreneurship Learn from Sound Family Businesses? Entrepreneurship Theory & Practice, v. 40, n. 3, pp. 445-455.

Morgan, D. L., & Krueger, R. A. (1998). Focus group kit. Thousand Oaks, CA: Sage Publications.

Morris, M. H., Williams, R. O., Allen, J. A., & Avila, R. A. (1997). Correlates of success in family business transitions. Journal of Business Venturing, v. 12, n. 5, pp. 385-401.

Nordqvist, M., Wennberg, K., Baù, M., & Hellerstedt, K. (2013). An entrepreneurial process perspective on succession in family firms. Small Business Economics, v. 40, n. 4, pp. 1087-1122.

O'Boyle Jr., E. H., Pollack, J. M., & Rutherford, M. W. (2012). Exploring the relation between family involvement and firms' financial performance: A meta-analysis of main and moderator effects. Journal of Business Venturing, v. 27, n. 1, pp. 1-18.

Parker, S. C., & van Praag, M. (2012). The Entrepreneur's Mode of Entry: Business Takeover or New Venture Start? Journal of Business Venturing, v. 27, n. 1, pp. 31-46.

Peters, M., & Kallmuenzer, A. (2015). Entrepreneurial orientation in family firms: The case of the hospitality industry. Current Issues in Tourism, v. 18, pp. 1-20.

Pistrui, D., Welsch, H. P., & Roberts, J. S. (1997). The [re]-emergence of family businesses in the transforming Soviet bloc: Family contributions to entrepreneurship development in Romania. Family Business Review, v. 10, n. 3, pp. 221-238.

Pistrui, D., Huang, W., Oksoy, D., Jing, Z., & Welsch, H. (2001). Entrepreneurship in China: Characteristics, Attributes, and Family Forces Shaping the Emerging Private Sector. Family Business Review, v. 14, n. 2, pp. 141-152.

Randerson, K., Bettinelli, C., Fayolle, A., & Anderson, A. (2015). Family entrepreneurship as a field of research: Exploring its contours and contents. Journal of Family Business Strategy, v. 6, n. 3, pp. 143-154.

Sánchez Marin, G., Carrasco Hernández, A. J., Danvila del Valle, I., & Sastre Castillo, M. A. (2016). Organizational culture and family business: A configurational approach. European Journal of Family Business, v. 6, n. 2, pp. 99-107.

Sardeshmukh, S. R., & Corbett, A. C. (2011). The Duality of Internal and External Development of Successors: Opportunity Recognition in Family Firms. Family Business Review, v. 24, n. 2, pp. 111-125.

Schumpeter, J. A. (1983). The Theory of economic development. Cambridge, Mass: Harvard University Press.

Shane, S. A. (2000). A general theory of entrepreneurship: The individual-opportunity nexus. Cheltenham, UK: Edward Elgar Publishing.

Shanker, M. C., & Astrachan, J. H. (1996). Myths and Realities: Family Businesses’ Contribution to the US Economy – A Framework for Assessing Family Business Statistics. Family Business Review, v. 9, n. 2, pp. 107-123.

Shepherd, D., Williams, T. A., & Patzelt, H. (2014). Thinking About Entrepreneurial Decision Making: Review and Research Agenda. Journal of Management, v. 41, n. 1, pp. 11-46.

Stafford, K., Duncan, K., Danes, S., & Winter, M. (1999). A Research Model of Sustainable Family Business. Family Business Review, v. 12, n. 3, pp. 197-208.

Stake, R. E. (1998). Case studies. In: N. Denzin, & Y. Lincoln. (Eds.), Strategies of qualitative inquiry. Thousand Oaks, CA: Sage.

Stamm, I., & Lubinski, C. (2011). Crossroads of Family Business Research and Firm Demography: A Critical Assessment of Family Business Survival Rates. Journal of Family Business Strategy, v. 2, n. 3, pp. 117-127.

Stewart, A., & Hitt, M. A. (2012). Why Can't a Family Business Be More Like a Nonfamily Business? Modes of Professionalization in Family Firms. Family Business Review, v. 25, n. 1, pp. 58-86.

Suchman, M. C. (1995). Managing legitimacy: strategic and institutional approaches. Academy of Management Review, v. 20, n. 3, pp. 571-610.

Strauss, A. L., & Corbin, J. M. (1990). Basics of qualitative research: grounded theory procedures and techniques. London: Sage Publications. 270p.

Tàpies, J., & Fernández, M. M. (2010). Values and longevity in family business: Evidence from a cross-cultural analysis. IESE Business School Working Paper No. 866.

Tàpies, J., & Moya, M. F. (2012). Values and longevity in family business: evidence from a cross‐cultural analysis. Journal of Family Business Management, v. 2, n. 2, pp. 130-146.

Venkataraman, S., & Sarasvathy, S. D. (2001). Strategy and Entrepreneurship: Outlines of an Untold Story. Darden Business School Working Paper, No. 01-06.

Welsh, D. H. B., Memili, E., Rosplock, K., Roure, J., & Segurado, J. L. (2013). Perceptions of Entrepreneurship across Generations in Family Offices: A Stewardship Theory Perspective. Journal of Family Business Strategy, v. 4, n. 3, pp. 213-226.

Wiklund, J., Nordqvist, M., Hellerstedt, K., & Bird, M. (2013). Internal versus external ownership transition in family firms: an embeddedness perspective (November 2013). Family Business Special Issue, v. 37, n. 6, pp. 1319-1340.

Wilson, S. R., Whitmoyer, J. G., Pieper, T. M., Astrachan, J. H., Hair, J. F., & Sarstedt, M. (2014). Method trends and method needs: Examining methods needed for accelerating the field. Journal of Family Business Strategy, v. 5, n. 1, pp. 4-14.

Wilson, N., Wright, M., & Scholes, L. (2013). Family business survival and the role of boards. Entrepreneurship Theory and Practice, v. 37, n. 6, pp. 1369-1389.

Woodfield, P. (2012). Intergenerational Entrepreneurship in Family Business: Conceptualising ways Entrepreneurial Family Businesses can be Sustained across Generations. Unpublished doctoral thesis.

Woodfield, P., Woods, C., & Shepherd, D. (2017). Sustainable entrepreneurship: another avenue for family business scholarship?, Journal of Family Business Management, v. 7, n. 1, pp. 122-132.

Xi, J., Kraus, S., Filser, M., & Kellermanns, F. W. (2015). Mapping the field of family business research: past trends and future directions. International Entrepreneurship and Management Journal, v. 11, n. 1, pp. 113-132.

Yu, A., Lumpkin, G. T., Sorenson, R. L., & Brigham, K. H. (2012). The Landscape of Family Business Outcomes: A Summary and Numerical Taxonomy of Dependent Variables. Family Business Review, v. 25, n. 1, pp. 33–57.

Zahra, S. A. (2005). Entrepreneurial risk taking in family firms. Family Business Review, v. 18, n. 1, pp. 23-40.

Zahra, S. A., & Sharma, P. (2004). Family Business Research: A Strategic Reflection. Family Business Review, v. 17, n. 4, pp. 331-346.

Zellweger, M. T., Nason, R. S., & Nordqvist, M. (2012). From longevity of firms to transgenerational entrepreneurship of families introducing family entrepreneurial orientation. Family Business Review, v. 25, n. 2, pp. 136-155.

Zhang, A., & Shaw, J. D. (2012). From the editors: publishing in AMJ - Part 5: Crafting the methods and results. Academy of Management Journal, v. 55, n. 1, pp. 8-12.