Family Firms as the Incubators of New Ventures: A Transgenerational Perspective

This chapter aims to explore the process of the creation of new ventures by incumbent firms, and especially by the most ubiquitous business organizations: family firms. Among the different typologies of entrepreneurial efforts available to existing firms (such as the development of a new internal division, licensing or minority equity investment), some firms decide to establish a new venture (i.e. a start-up). Specifically, the research question we address in this chapter is: why and how do incumbent firms generate new ventures? To answer this, we draw on the concept of transgenerational entrepreneurship, namely the combination of (i) an entrepreneurial mindset and (ii) family -influenced resources and capabilities. Methodologically, the chapter builds on a single longitudinal case study: an Italian family-owned firm that has established a corporate venture as part of the family business group. The descriptive findings show that the decision to establish a new venture, from among the different types of venturing available, depends on the combination of entrepreneurial mindset and family -influenced resources and capabilities. Moreover, we clarify the role and contribution of existing firms, and especially of family firms, for the birth of new businesses.