A Conceptual Framework of Challenges and Remedies in Two-Generation Business Model Innovation within Family-Owned Enterprises

Document Type : Original Article

Authors
Maryam Vajdi Vahid 1
Jahangir Yadollahi Farsi 2
Kamal Sakhdari 3
Mehran Rezvani 4
1 PhD .student of Corporate Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Iran
2 Professor, Department of New Business, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.
3 Associate Professor, Department of Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.
4 Professor, Department of Organizational Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.
10.22034/jmek.2024.460765.1135
Abstract
Business model innovation (BMI) represents a firm's rationale for seeking, creating, and delivering new value. Value creation in family firms faces significant challenges, particularly during the entry of the second generation (G2). Identifying the obstacles and solutions for transgenerational value creation is crucial. This study aims to identify barriers and solutions across three dimensions: firm and first-generation (G1) management, G2 entry factors, and value co-creation. This applied qualitative research employs a multiple case study method involving five family firms in the publishing industry. Data were collected through 13 semi-structured interviews with G1 members, G2 members, and industry experts. The collected data were systematically analyzed using the Gioia coding method to develop a comprehensive conceptual framework. The findings reveal that establishing a shared vision, resolving conflicts through interaction, exchanging knowledge, and fostering mutual trust are key solutions for value co-creation. Regarding G1 management, reducing risk aversion, enhancing flexibility, and transferring management to G2 are vital strategies. Furthermore, accepting active G2 members, empowering passive G2 members, and trusting G2's innovative ideas are recognized as effective solutions driven by G2's entry. This research provides a novel conceptual framework demonstrating how constructive transgenerational interaction and the strategic empowerment of G2 act as catalysts for BMI and long-term value creation.
Keywords
Business Model Innovation (BMI)
Value Creation
Family Firms
Transgenerational Succession
Challenges and Solutions
Subjects
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  • Receive Date 02 February 2026
  • Revise Date 15 April 2026
  • Accept Date 30 May 2026