Abstract
This chapter will focus on the development needs of the second generation to become a business from a practical/action orientated perspective. The aim is to reveal some practical implications which could be helpful for the second or subsequent generations to find their own way in the sequence of generations. The demanding challenge in the long-term strategy of family owned business shaping the growth development. There is not a simple key success factor enabling a family and its company to pursue a growth path. It requires a special mindset and a fit in four major dimensions.
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Notes
- 1.
See Casillas and Moreno (2010) for an overview of the relationship between the entrepreneurial orientation and growth of family firms. The authors conclude that family involvement has a positive influence on the innovation capabilities (Moreno & Casillas, 2008) and the competitive aggressivity, but has a negative impact on risk propensity.
- 2.
Empirical observation in action research as Board Member. This effect is similar to the famous Lohman–Ruchti-Effect explaining the capacity extension by immediately reinvesting the cash flow from depreciation which levels off in subsequent periods (Ruchti, 1953).
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Seibold, L.K.C., Lantelme, M., Kormann, H. (2019). Growth Path of Family Enterprises. In: German Family Enterprises. Springer, Cham. https://doi.org/10.1007/978-3-030-04101-4_5
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