Simulating Dynamic Capabilities and Value Creation in Family Firms: Is Paternalism an 'Asset' or a 'Liability'?

Family Business Review, Vol. 25, pp. 318-338, 2012

22 Pages Posted: 18 Nov 2012

See all articles by Francesco Chirico

Francesco Chirico

Macquarie University, Macquarie Business School; Jonkoping University - Jonkoping International Business School (JIBS)

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS); Babson College - Arthur M. Blank Center for Entrepreneurship

Gianluca Colombo

University of Lugano

Edoardo Mollona

University of Bologna

Date Written: 2012

Abstract

The authors conduct a simulation study using system dynamics methods to interpret how and when paternalism affects dynamic capabilities (DCs) and by association value creation in family firms. Their simulation experiments suggest that the effect of paternalism on DCs and value creation varies over time. Initially, increasing levels of family social capital and low levels of paternalism are associated with high rates of DCs and value creation accumulation (asset). Later, higher levels of paternalism produce their pressure to decrease DCs, value creation, and family social capital accumulation rates (liability).

Keywords: Family firm, dynamic capabilities, resources, paternalism, value creation

Suggested Citation

Chirico, Francesco and Nordqvist, Mattias and Colombo, Gianluca and Mollona, Edoardo, Simulating Dynamic Capabilities and Value Creation in Family Firms: Is Paternalism an 'Asset' or a 'Liability'? (2012). Family Business Review, Vol. 25, pp. 318-338, 2012, Available at SSRN: https://ssrn.com/abstract=2177310

Francesco Chirico (Contact Author)

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Babson College - Arthur M. Blank Center for Entrepreneurship

231 Forest Street
Babson Park, MA 02457-0310
United States

Gianluca Colombo

University of Lugano ( email )

Via Giuseppe Buffi 13
Lugano, TN Ticino 6900
Switzerland

Edoardo Mollona

University of Bologna ( email )

Piazza Scaravilli 2
Bologna, 40100
Italy

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