Effectuation and strategic evolution for sustainable longevity: the case of a 19th-generation family firm
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 17 November 2023
Issue publication date: 2 April 2024
Abstract
Purpose
This article explains the causal mechanism supporting sustainable longevity by analysing the last three generations of one of the oldest family firms in Latin America.
Design/methodology/approach
An explanatory single-case qualitative research based on critical realism explores why and how this family firm has been able to maintain its multigenerational longevity.
Findings
Los Lingues's evolutionary strategy, driven by transgenerational entrepreneurship under effectuation, has supported this family firm's sustainable longevity. Its effectual logic emerged mainly from the richness of the firm's historical resources embedded in its identity, knowledge and social capital and priority to preserve socioemotional wealth.
Originality/value
This study integrates socioemotional wealth and effectuation theory to explain a family firm's ability to survive through generations and sustain longevity. The study demonstrates the relevance of effectual logic in the entrepreneurial dynamics of a multigenerational family firm. Effectual logic drives the firm evolution and adaptation for sustainable longevity.
Keywords
Acknowledgements
This paper forms part of a special section “Innovative entrepreneurial behavior vs entrepreneurial activity in today’s business environment”, guest edited by Alba Yela Aránega and Julio Cañero Serrano.
The authors would like to acknowledge the assistance of Thaddeus J. Shalek and the hospitality of the family and staff at Los Lingues.
Citation
Welsh, D.H.B., Llanos-Contreras, O. and Hebles, M.R. (2024), "Effectuation and strategic evolution for sustainable longevity: the case of a 19th-generation family firm", International Journal of Entrepreneurial Behavior & Research, Vol. 30 No. 4, pp. 834-855. https://doi.org/10.1108/IJEBR-07-2023-0684
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited