A configurational approach to strategic change in family firms

Abstract

Strategic change is essential for an organization's long-term performance and survival. Research has investigated how governance structures, organizational values, capabilities, and firm size, in isolation from one another, influence family firms' strategic change, yet insights in family firm literature suggest the need to examine the fit among these dimensions. We employ a configurational approach and a framework built from models of fit in family firm literature to examine the interdependence among these dimensions. Using a primary dataset of 275 Belgian private family firms and fuzzy-set qualitative comparative analysis (fsQCA), we identify six configurations leading to high levels of strategic change and three configurations explaining low levels of strategic change. This study contributes to the literature by advancing our understanding of how multiple interdependent dimensions, namely, governance structures, organizational values, capabilities, and firm size, combine to better explain strategic change levels in family firms. The findings also provide concrete formulas for practitioners to create a fit among specific factors in these dimensions to promote strategic change.