Simulating dynamic capabilities and value creation in family firms: Is paternalism an "asset" or a "liability"?

Francesco Chirico*, Mattias Nordqvist, Gianluca Colombo, Edoardo Mollona

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

32 Citations (Scopus)

Abstract

The authors conduct a simulation study using system dynamics methods to interpret how and when paternalism affects dynamic capabilities (DCs) and by association value creation in family firms. Their simulation experiments suggest that the effect of paternalism on DCs and value creation varies over time. Initially, increasing levels of family social capital and low levels of paternalism are associated with high rates of DCs and value creation accumulation (asset). Later, higher levels of paternalism produce their pressure to decrease DCs, value creation, and family social capital accumulation rates (liability).

Original languageEnglish
Pages (from-to)318-338
Number of pages21
JournalFamily Business Review
Volume25
Issue number3
DOIs
Publication statusPublished - 1 Sep 2012
Externally publishedYes

Keywords

  • dynamic capabilities
  • family social capital
  • paternalism
  • simulation
  • system dynamics
  • value creation

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