Theory and practice of the evolutionary networks of potential in a family business succession

Abstract

Aim/purpose – This paper aims to introduce and describe a new paradigm (model) of evolutionary dynamism of family business potential in the succession process and its empirical simulation in family enterprises from culturally close “post-socialistic” coun- tries: the Czech Republic and Poland. Design/methodology/approach – The conceptual basis for developing the evolutionary model of family business was our research on the sample of 235 small and medium-sized family enterprises from the Czech Republic and Poland. A practical experimental simu- lation of the model was carried out in 12 Czech and 19 Polish family companies. Findings – The proposed model is based on economic and natural laws, including opti- mization proportions of the golden ratio, laws of time economics, theory of innovation, and “Moore’s law.” This model allows us to simulate and analyze the pace of accelerat- ing innovation cycles and the dynamism of intergenerational changes of family business potential in the succession process. Research implications/limitations – The social and industrial revolution 5.0 is getting near and global economic, social, cultural, ecological, and other contemporary turbu- lences, built on the “microcosm optimization” of living matter, having two extreme marginal variants for the subsequent (evolutionary) development of family business: (a) an option of “harmony” or (b) an option of “tragedy.” One limitation of the model is its general nature, making it sensitive to outlier cases. Originality/value/contribution – The proposed model provides valuable analytical guidelines for family business succession and significantly highlights the role of intra- family dynamics in this process. It also represents a novel analytical approach to as- sessing and predicting the longevity of family business as well as an opportunity for the development of mixed research in family entrepreneurship. Keywords: Family entrepreneurship, family business, succession, innovation, potential. JEL Classification: L26, M21, O31, P47