Knowledge Dynamics in Family Business

Adrian MOTOC

Abstract


Knowledge is one of the most important and fundamental resources of a company, providing it with the means to develop a competitive advantage and be innovative in the dynamic market, through creating, sharing, and transferring it within the firm. Family business distinguishes itself from others through the family connection that sets its mark on how the company is run and its highly contextual culture. Therefore, the purpose of this paper is to gain a deeper understanding of how knowledge transfer occurs in family businesses. This qualitative study aims to gather empirical data using the case study methodology by applying semi-structured interviews. The cases comprise family businesses from Romania acting in different industries. The analyzed family businesses, when it comes to knowledge transfer, rely on their social interaction and are reluctant towards processes that imply externalization of their knowledge mainly out of convenience and the fact that this process did not prove its need. This leads to both positive and negative effects on the growth of the company and its longevity.

 


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