The Value Creation Process in Family Firms. A Dynamic Capabilities Approach

While most family-business research has focused on studies related with trans-generational value creation, a gap still exists in understanding how this value is generated across genera-tions, especially in dynamic markets. The present research offers new insights through the lens of dynamic capabilities, which are generated by knowledge and in turn generate entre-preneurial performance for value creation in family business. Family inertia is considered to be a factor preventing the creation of dynamic capabilities. It depends on the family-business culture, where paternalism and entrepreneurial drive influence family inertia posi-tively and negatively, respectively. Four family firms from Switzerland and Italy are part of this research