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

Dynamic capabilities and trans-generational value creation in family firms: The role of... 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Small Business Journal SAGE

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

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References (50)

Publisher
SAGE
Copyright
© The Author(s) 2010
ISSN
0266-2426
eISSN
1741-2870
DOI
10.1177/0266242610370402
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

International Small Business JournalSAGE

Published: Oct 1, 2010

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