Dynamic Capabilities and Trans-Generational Value Creation in Family Firms: The Role of Organizational Culture
International Small Business Journal, Vol. 28, No. 5, pp. 487–504, 2010
19 Pages Posted: 18 Nov 2012
Date Written: 2010
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.
Keywords: dynamic capabilities, resources, value creation, organizational culture, family firm
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