Entrepreneurial and Small Business Operations Commons^™

The Transgenerational Family Effect On New Venture Growth Strategy., D. Pistrui, Patrick J. Murphy, A. Deprez-Sims

Patrick J. Murphy

We examine family-based resiliencies and transgenerational phenomena in family business contexts and introduce the transgenerational family effect (TFE) construct. The TFE influences long-term strategy and culture in family-based entrepreneurial ventures. We clarify the boundaries of the construct based on evidence from 414 cases in the panel study of entrepreneurial dynamics. Then, we operationalise it with two-by-two permutations of family membership and strategic tradition. Finally, we develop and assess hypotheses about venture strategic vision, growth orientation and wealth orientation. Our findings suggest that the TFE promotes vision and wealth creation across generations in family businesses