Navigating the pathways to long-term growth in family businesses requires a balance between ownership structures, familial relationships, business operations and individual aspirations All of these elementscan be change drivers or blockers, depending on how they are managed. For instance, as companies expand, incorporating family members into the management ranks brings new perspectives but also tensions if roles and expectations are poorly clarified (Eddleston and Kellermanns, 2007).
Our family business is transferring to the second generation, with family members stepping into leadership positions gradually (in the so-called higher management of the firm). This shift offers opportunities for innovation but also challenges in aligning visions across generations.
In family businesses transitioning to the next generation, how can companies balance honoring the founder's legacy with embracing necessary innovations for future growth?
Source:
Eddleston, K.A. and Kellermanns, F.W., 2007. Destructive and productive family relationships: A stewardship theory perspective. Journal of business venturing, 22(4), pp.545-565.