Effectuation and strategic evolution for sustainable longevity : the case of a 19th-generation family firm

Abstract

Purpose: This article explains the causal mechanism supporting sustainable longevity by analysing the last three generations of one of the oldest family firms in Latin America. Design/methodology/approach: An explanatory single-case qualitative research based on critical realism explores why and how this family firm has been able to maintain its multigenerational longevity. Findings: Los Lingues's evolutionary strategy, driven by transgenerational entrepreneurship under effectuation, has supported this family firm's sustainable longevity. Its effectual logic emerged mainly from the richness of the firm's historical resources embedded in its identity, knowledge and social capital and priority to preserve socioemotional wealth. Originality/value: This study integrates socioemotional wealth and effectuation theory to explain a family firm's ability to survive through generations and sustain longevity. The study demonstrates the relevance of effectual logic in the entrepreneurial dynamics of a multigenerational family firm. Effectual logic drives the firm evolution and adaptation for sustainable longevity.