Trans-generational success of family businesses

Abstract

Family business has high impact in both developed and emerging markets. This paper seeks identification and application of relevant literature to the long-term potential of family businesses (FBs), particularly as they are handed off to successive generations. While much literature is biased in favour of the developed markets studied, i.e.: Western assumptions - commonalities are sought that would apply cross-culturally. The purpose of this paper is to provide a framework of managerial orientations as a comprehensive tool to enhance the survival of FBs in a competitive global economy that would serve as a framework for future studies. The paper draws upon strategic management, family businesses and firm performance literatures to formulate a model of entrepreneurial antecedents to long-term sustainability of the family based enterprise. The review of the relevant literatures regarding the possible strategies taken by FBs shows that there are numerous gaps with regards to the relationship between these strategies and firm performance - namely firm growth and survival. In addition, the review discovers that some of the possible strategies are observable both to internal and external stakeholders and could be addressed for corrective action.