Entrepreneurial resilience in family businesses - an intergenerational learning approach

Summary of the study

The aim of this study is to investigate leadership succession in family businesses. Although extensive research on leadership succession exists, no attempt has yet been made to understand this phenomenon through an intergenerational learning approach. By applying the Double ABC-X model, we discuss how resilience is developed through intergenerational learning during leadership succession in family businesses.
Based on an individual case, pre- and post-event parameters of the investigated business family are defined and the Double ABC-X model is used as an analytical framework. Individual and pair interviews as well as a family business workshop were conducted as part of an action research approach with several interventions. Qualitative data was collected using reflection diaries, field notes and observation protocols. Finally, the data are analyzed according to a circular deconstruction strategy.

Specific pre-event stressor parameters related to mutual distrust, independent decision-making and non-strategic transfer of power, knowledge and responsibility from predecessor to successor are identified. The intervention based on the intergenerational approach focuses in the post-crisis phase on problem solving and coping with the new situation of the two generations living together. The intergenerational learning approach, based on the accumulation of demands, adaptive resources and perception, is the source of family adaptation. In addition, the power of narrative to reflect on past events and project the future seems to be the point at which the family begins to develop resilience.

The way family businesses deal with critical and stressful events during leadership succession can lead to intergenerational learning, which is a source of resilient families. In this study, the Double ABC-X model is applied to understand leadership succession in family businesses and further developed to explain how families develop resilience.

Key findings of this study

• The challenge of succession: The study shows that leadership succession in family businesses is a complex and lengthy process that is accompanied by numerous critical and stressful events. These events include pre-crisis stressors, the crisis itself and post-crisis learning actions, all of which need to be managed together.
• Identified stressors: Specific stressors related to mutual distrust, independent decision making and non-strategic transfer of power and knowledge from predecessor to successor were identified. Unresolved relationship and sibling conflicts and a lack of clear responsibilities also place a considerable burden on the process.
• Role of intergenerational learning: Intergenerational learning, based on the accumulation of demands, adaptive resources and perceptions of the situation, is the central source of family adaptation and resilience. It enables family members to learn from critical events and develop new perspectives.
• Developing resilience through intervention: Targeted interventions, such as reframing and the establishment of common communication rules (e.g. weekly jour-fixes), reduced emotional stress and triggered a learning process. This led to improved mutual understanding and a gradual development of family resilience.
• Practical implications for strengthening resilience: In order to promote resilience in family businesses, it is essential to reduce stress, clearly define competencies and responsibilities and establish a knowledge-oriented culture. In addition, building emotional and spatial distance and establishing adaptive conflict resolution structures help to successfully cope with critical events.