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  • Overqualified and disadvantaged: exploring the barriers to growth of family businesses to second-generation leaders

    September 9, 2012 Editor 0

    Overqualified and disadvantaged: exploring the barriers to growth of family businesses to second-generation leaders
    Craig E. Armstrong
    International Journal of Entrepreneurship and Small Business, Vol. 17, No. 2 (2012) pp. 160 – 175
    According to popular perception, family-owned businesses do not grow. One explanation for this perception is that the next generation of business leadership is ‘weak’. This explanation is both untrue and unfair. The purpose of this proposed paper is to explore the 1) human capital factors that affect differences in generational leadership effectiveness; 2) competitive factors that can hinder growth in family businesses; 3) the effects of prospect theory on the decision making of the second generation of leadership. In contrast to popular perception, I argue that the second generation of leadership is better prepared to operate – and even grow – the family business, but that the success of the first generation of leadership dramatically constrains the decision making space for the second generation.

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