Transgenerational Entrepreneurship and Family Constitution: An Exploratory Case Study Analysis

Abstract

Research shows that family owned businesses are less entrepreneurial on average, especially after the founder departs. Despite agreement on the importance of adopting governance structures and mechanisms for the survival of family businesses, there is still a lack of togetherness or cohesion among the family members across generations, which leads to confusion and conflicts and poses a serious threat to the sustained growth and long-term survival of the business. The aim of this paper is to explore the role of family constitution for transgenerational entrepreneurship in family businesses by examining how family governance practices can contribute to strengthening the transgenerational entrepreneurship. In this regard, family constitution of a family owned business located in İzmir, was examined and in-depth interviews and exploratory case study analysis from qualitative research methods were applied.Research shows that family owned businesses are less entrepreneurial on average, especially after the founder departs. Despite agreement on the importance of adopting governance structures and mechanisms for the survival of family businesses, there is still a lack of togetherness or cohesion among the family members across generations, which leads to confusion and conflicts and poses a serious threat to the sustained growth and long-term survival of the business. The aim of this paper is to explore the role of family constitution for transgenerational entrepreneurship in family businesses by examining how family governance practices can contribute to strengthening the transgenerational entrepreneurship. In this regard, family constitution of a family owned business located in İzmir, was examined and in-depth interviews and exploratory case study analysis from qualitative research methods were applied.