Family businesses are often seen as stable thanks to their legacy, yet vulnerable in times of crisis because of their inertia. So how can that legacy become a driver of adaptation and innovation?
The good news is that there are levers to transform this heritage into a genuine engine of resilience and innovation.
In research presented at the academic conference “Family businesses: an organizational model in times of crisis and transition?”, we showed that participatory approaches, especially the Circulab method and its tools (Circular Canvas, Business Resilience Game…), enable leaders to re-examine their purpose, turn constraints into opportunities and anticipate crises.
Between inertia and adaptation: a well-known paradox
Family businesses are the most widespread organizational form worldwide. Their longevity is often attributed to continuity across generations, strong emotional and patrimonial commitment, and dense social capital and trust1. These factors support long-term strategic thinking and strengthen resilience to short-term shocks.
Yet academic literature shows that these same strengths can become barriers to adaptation. Studies highlight:
- Strategic inertia linked to attachment to legacy and existing models2.
- Risk aversion driven by the desire to protect socio-emotional wealth rather than risk it through disruptive decisions3.
- Strong dependence on the leader or dominant generation, resulting in excessive centralization and slower decision-making4.
Family businesses therefore illustrate a paradox of resilience: the same resources that ensure stability—identity, cohesion, continuity—can also limit innovation and adaptability5.
This paradox becomes even more pronounced in a context shaped by systemic crises—ecological (climate disruption, resource scarcity), social (changing societal expectations, intergenerational tensions), or economic and geopolitical (supply chain shocks, energy inflation). In such an environment, family businesses cannot rely solely on preserving the past; they must learn to transform their identity into a dynamic resource that supports rapid and proactive adaptation6.
This is where participatory approaches come into play. Research in systems thinking and organizational reflexivity7 suggests that collective, interactive, and visual methods—such as collaborative workshops, strategic canvases, or serious games—help organizations overcome inertia. These tools act as boundary8 objects that make dialogue possible between actors with different interests, backgrounds, and generations.
By using these tools, family businesses can reinterpret their purpose collectively, bridge the past with a shared vision of the future, and turn a sometimes static identity into a living strategic compass.
A field study: the case of a family-owned mid-sized company
To explore these issues, we studied a family-owned mid-sized company, a leader in its sector, facing strong environmental and regulatory pressures.
With Circulab’s tools, the company deployed participatory approaches: Circular Canvas and the Business Resilience Game workshops. The goal was to revisit its purpose and build a shared view of vulnerabilities and opportunities.
Three main findings:
Systemic awareness
- Participatory tools helped teams step back from daily operations.
- The Circular Canvas helped visualize interdependencies (natural resources, energy, partners, logistics).
- A clear shift occurred: from regulatory compliance to strategic anticipation.
Collective engagement around purpose
- Workshops and the Business Resilience Game acted as catalysts for debate.
- The company’s purpose was updated collectively, moving from a static legacy to a living, unifying compass in times of crisis.
- Younger generations gained space to express themselves, enabling broader transmission—not only of capital, but of values and vision.
Persistent tensions
- Difficulty embedding these approaches within governance.
- Continued centrality of the leader, who remains the mediator between legacy and innovation.
Between heritage and participation
The study highlights a fragile but valuable complementarity:
- Family heritage brings legitimacy, historical depth, and continuity
- Collective participation brings openness, innovation, and diverse perspectives
But if heritage dominates, the risk is inertia.
If participation remains symbolic, the risk is frustration and disengagement.
The key lies in governance that can combine both dimensions and give participatory approaches a real role.
Practical insights for leaders
Three main lessons emerge for practitioners and leaders of family businesses:
- Update purpose through co-construction: purpose becomes a living compass when reinterpreted collectively.
- Create intergenerational dialogue spaces: these approaches help younger generations contribute, supporting broader transmission.
- Turn constraints into strategic opportunities: regulations, carbon assessments, and compliance frameworks can become drivers of innovation and anticipation.
Conclusion
The resilience of family businesses does not depend solely on the strength of their heritage. It depends on their ability to reinterpret that heritage collectively and embed it within participatory approaches that are fully integrated into governance.
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