Two-generation value creation with G1 and G2 capabilities in family firms
Abstract
Purpose: Business model innovation is considered as a firm's rationale for searching, creating and delivering new value. The innovation of family firms is influenced by factors related to the firm and family such as the entry of G2 into the firm. There is a gap in how to create new value with G1 and G2 capabilities in family firms. Previous research has not investigated the role of the G1 and G2 in creating new value. Considering this gap in knowledge, there is a need to investigate the relationship between the participation of the G1 and G2 with their capabilities and creating new value. This research explains the creation of two-generation value of family businesses by considering the role of the capabilities of the G1 and G2s.
Method: To investigate the above relationships, a case study method was used from 5 firms with 13 semi-structured interviews with G1 and G2 and experts. First, literature review done and interview protocol designed by results. Interviews conducted and after theoretical saturation, the findings matched with the theoretical views of the literature and finally the resulting data analyzed using the systematic grounded theory Straus Corbin method. Using the construct of "G1 and G2 capabilities in value creation" at the level of analysis firm and family, based on the findings of central and selective coding, a conceptual framework, practical suggestions and future research presented.
Result: The results show that the creation of two-generation value is due to the absorptive capacity of G2 and their awareness of modern technology, and the search for new value carried out by G2. Creating new value and providing it to the customer with the capabilities of G2 and integrated leadership and allocation of resources of G1. The new generation acts as a facilitator of new value creation. The search for new value and the integration of internal and external knowledge by G2 and the provision of resources and coordination of the firm and activities by G1 are the factors that create the value of two generations.
Keywords
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DOI: http://dx.doi.org/10.33021/ijfbp.v6i2.4734
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