Bridging tradition and innovation: generational dynamics in family business succession

Abstract

This study explores intergenerational challenges in family businesses, focusing on differences between Generation X and Generation Y regarding socioemotional wealth, innovation, social media, technology adoption, and succession planning. The research aims to identify generational differences in perceptions and behaviors that affect family legacy preservation and succession processes. A qualitative design was used, combining literature review with 18 semi-structured interviews of GenX and GenY owners of small and medium-sized family firms. Thematic and cluster analyses were applied to identify patterns across generations. Findings reveal a clear generational divide. These tensions impact on maintaining the family legacy. The results show that even for companies that have already experienced the changeover at least twice, there remains a generational gap in the approach to modernization. It can be argued that the approach to change exhibited by the next generation is not different from that of previous generations. Insights can guide family firms in balancing tradition with innovation through intergenerational dialogue, structured succession planning, and embracing technology.