Understanding the main drivers of family firm longevity: the role of business family learning

Abstract

Through an exploratory study of three long-standing German family firms, we propose a theoretical framework to study family firm longevity. Whereas research so far has mainly focused on the firm’s level of analysis, this study aims to elucidate the role of the business family learning in the longevity of these long-standing family firms. Moreover, the business family is considered as an independent organizational entity capable of learning and developing. Drawing upon the concept of organizational learning, we find higher-level learning as a vehicle for defining the purpose of the business family—transgenerational control—and the implementation of necessary structures—succession processes. Lower-level learning ensures these successions processes are adaptable to environmental changes. Implications for theory and practice are discussed.

Keywords:

• Business family
• family firm
• longevity
• organizational learning
• succession process

Additional information

Notes on contributors

Ann Sophie K. Löhde

Ann Sophie Löhde finished her Ph.D. on longevity and internationalization strategies of family firms at WIFU – Witten Institute for Family Business in 2018 before joining a large German single family office as an investment manager. She has continued her research efforts as a senior research fellow at WIFU focusing on family firm longevity and family offices.

Andrea Calabrò

Andrea Calabrò is Co-Director of the IPAG Entrepreneurship & Family Business Center and Professor at IPAG Business School, France. He is Global Academic Director of the STEP Project. He has published journal articles on family firms, internationalization, and corporate governance in leading international journals such as: Strategic Management Journal, Entrepreneurship Theory & Practice, and Family Business Review, Harvard Business Review.

Mariateresa Torchia

Mariateresa Torchia is Associate Professor of Management and Co-Director of Research at the International University of Monaco. Her main research interest is in the area of Corporate Governance, Family Business and Gender Diversity. She is currently chair of the Track Board of Directors and Top Management Teams at the European Academy of Management.