Document Type : Research Paper
Author
PHD in Department of Corporate Entrepreneurship, Faculty of Entrepreneurship, University of Tehran
Abstract
Family firms face a fundamental challenge at the point of generational transition: How can they facilitate the necessary innovations for the survival and growth of the second generation (G2) simultaneously preserving the legacy and knowledge of the first generation (G1)? This research examines the mechanisms for innovation activation during the intergenerational transition (G1 to G2). By employing a multiple case study approach across five family firms, presented a novel conceptual framework for ‘Two-Generational Innovation.’ This framework is built upon five critical activation levers. The findings indicate success in generational transition is not merely a process of power or ownership transfer, but rather a complex and dynamic process of collaborative innovation requires the sequential and integrated activation of these levers. The study emphasizes overcoming inherent resistance to change and transforming intergenerational conflicts into innovative opportunities is the key to ensuring future organizational resilience. The results show intergenerational conflicts, resource asymmetries, and cultural rigidity hinders innovation. However, targeted interventions in these five areas enable G1 and G2 to create shared value. By reframing succession as a process of collaborative innovation rather than mere replacement, this study advances family business research. Practical implications include strategies for enhancing trust, knowledge transfer, and sustainable governance structures.
Keywords
Main Subjects
)