Bouncing Back and Going On: The Resilient Family Firm

Abstract:     
The longevity of some family businesses is a fascinating phenomenon and there are many researchers who would like to discover the well-kept secrets of the 'philosophical stone' of the long-lasting firms. In this quest, some have advanced that to survive, over the long run, the family firm must be managed with a clear vision of the future of the business and with the intention to pass it on to the next generation (Ward, 1987; Davis and Tagiuri, 1992; Gersick et al., 1997). Others have pointed to the necessity for the family to nurture a shared sense of community between the members of the family and a common desire to remain in business (Miller and LeBreton-Miller, 2005; Santarelli and Lotti, 2005). Some have explored how great family businesses have balanced the needs of the family and those of the business, viewing the equilibrium between these contradictory forces, the key to survival (Holland and Boulton, 1984; Rosenblatt et al., 1985; Ward, 1987). Others have looked at the capacity of the long-lived family firm to maintain an entrepreneurial orientation (Zellweger and Sieger, 2010) as well as to keep a solid family organization and a good governance structure (Aronoff, 2004). Adding to this list of hints for the longevity of the family business, Olson and al. (2003) have shown that the dedication of the family towards the business and the readiness of the family members to play a buffer role in giving time, extra work or other resources when the business meets disruptive events may contribute to the business sustainability.

Number of Pages in PDF File: 26

working papers series