Francesco Chirico, Mattias Nordqvist, both of Jönköping International Business School, Gianluca Colombo, University of Lugano, and Edoardo Mollona, University of Bologna, published “Simulating Dynamic Capabilities and Value Creation in Family Firms: Is Paternalism an ‘Asset’ or a ‘Liability’?” on November 28th, 2011 in Family Business Review. To view other OnlineFirst articles, please click here.
The authors conduct a simulation study using system dynamics methods to interpret how and when paternalism affects dynamic capabilities (DCs) and by association value creation in family firms. Their simulation experiments suggest that the effect of paternalism on DCs and value creation varies over time. Initially, increasing levels of family social capital and low levels of paternalism are associated with high rates of DCs and value creation accumulation (asset). Later, higher levels of paternalism produce their pressure to decrease DCs, value creation, and family social capital accumulation rates (liability).
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