Abstract:
Family businesses constitute a significant portion of the South African and global economy, contributing to employment, and economic growth. However, the unique dynamics inherent in family businesses, originating from family dynamics and multiple generation involvement, present both opportunities and challenges for organizational resilience. This research explores the complexities of family business heterogeneity and discusses its influence on resilience in the context of family dynamics and generational involvement.
Drawing on insights from family theory, generational theory, and stewardship theory, this research adopts an interdisciplinary approach to explore the interplay between family relationships, generational differences, and organizational resilience. Through a comprehensive review of literature and empirical analysis of multi generation family businesses, the study explains the mechanisms through which family dynamics and generational involvement shape resilience strategies and organizational outcomes.
Key findings highlight the overarching influence of family values and the importance of embracing diverse views and perspectives, promoting open and honest communication, building and maintenance of trust, transfer of knowledge, and the establishment of a clear hierarchy and understanding of roles in family businesses. By recognizing the unique strengths and challenges associated with family dynamics and generational involvement, stakeholders can leverage the inherent resilience of family businesses to navigate uncertainties, capitalize on opportunities, and sustain long-term success.
