CeFEO counts more than 50 scholars and 30 affiliated researchers. Several studies and reports have consistently identified CeFEO as a leading research environment worldwide in the area of ownership and family business studies. This research project, has been co-authored by the following CeFEO Members.
Spotlight highlights research-based findings only. If you’re interested in exploring this project further or delving into the theoretical and methodological details, we encourage you to contact the authors or read the full article for a comprehensive understanding.
Ramírez-Pasillas, M., Lundberg, H., & Nordqvist, M. (2021). Next generation external venturing practices in family owned businesses. Journal of Management Studies, 58(1), 64–90
https://doi.org/10.1111/joms.12566
Spotlight is an innovative online family business magazine designed to bridge the gap between cutting-edge research and the real-world needs of practitioners, owners, and policymakers. Drawing on the latest findings from the Centre for Family Entrepreneurship and Ownership (CeFEO) at Jönköping International Business School, Spotlight delivers insightful, accessible summaries of key research topics. Our mission is to keep the family business community informed and empowered by offering actionable insights, expert analyses, and forward-thinking strategies that enhance business leadership and ownership practices for long-term success.
Family businesses are known for strong traditions—but what happens when younger generations want to carve their own path? This article explores how next-generation members of Mexican family firms launch ventures outside the main business, sometimes with family support, sometimes in secrecy, and often with remarkable creativity. Drawing on an “Entrepreneurship as Practice” approach, the research unpacks five everyday strategies these young entrepreneurs use and how these form three distinct routes—imitation, evolution, and separation. Their stories reveal not only how new ventures are born, but also how family dynamics shape the process of innovation itself.
Family businesses are known for strong traditions—but what happens when younger generations want to carve their own path? This article explores how next-generation members of Mexican family firms launch ventures outside the main business, sometimes with family support, sometimes in secrecy, and often with remarkable creativity. Drawing on an “Entrepreneurship as Practice” approach, the research unpacks five everyday strategies these young entrepreneurs use and how these form three distinct routes—imitation, evolution, and separation. Their stories reveal not only how new ventures are born, but also how family dynamics shape the process of innovation itself.
Entrepreneurship is often romanticized as the daring pursuit of something new. But in the context of family-owned businesses (FOBs), the story is more complex. Younger generations frequently grow up immersed in the family business, absorbing its values, culture, and unwritten rules. Yet many aspire to chart a different course—launching ventures that live outside the core firm. These endeavors bring a unique set of challenges and opportunities, especially when they must navigate the family’s expectations and internal power structures.
While much has been written about internal corporate venturing in family firms—such as spin-offs and innovation units—external venturing remains understudied. How do next-generation members initiate and legitimize ventures that aren’t part of the legacy business? How do they balance respect for tradition with the desire for independence? And what does this mean for the future of family entrepreneurship?
To answer these questions, this article summarizes a rich longitudinal study that explores how young family members in two Mexican FOBs used everyday tactics—such as seeking approval, bypassing authority, and mimicking family models—to launch ten external ventures. Their stories offer valuable insights into the real-life complexities of entrepreneurship in a family setting.
The research draws on the Entrepreneurship as Practice (EaP) approach, which focuses on the lived, relational, and processual aspects of entrepreneurial action. Rather than looking only at outcomes, the study emphasizes the how—the everyday practices and micro-interactions that enable ventures to take shape within socially embedded contexts.
Using Michel de Certeau’s distinction between “strategies” (dominant institutional logics) and “tactics” (subtle acts of agency), the authors examined how next-generation entrepreneurs maneuver within the constraints of the family business. The empirical study took place in Mexico, where family ties are culturally central and entrepreneurial ventures are often initiated through familial networks.
Two mid-sized Mexican FOBs were selected:
Across these firms, the researchers observed ten external ventures over three years—five per family. Data collection included 28 interviews, numerous observations, and participation in family meetings and daily routines. This comprehensive approach allowed the researchers to uncover subtle but significant patterns in how new ventures were initiated, shaped, and sustained within a family context.
Next-generation entrepreneurs used five core practices to navigate their relationships with family members and initiate new ventures:
Each practice reflected a form of tactical agency, enabling entrepreneurs to respond to or manipulate the “dominant order” of the family and its firm without direct confrontation.
These practices were not isolated; instead, they combined into three broader venturing routes, which represent patterns of behavior in how external entrepreneurship unfolded:
These routes are not mutually exclusive; entrepreneurs often moved between them depending on opportunity, family reaction, or venture evolution. What unites them is the way they emerged through subtle, context-sensitive actions rather than formal strategic planning.
Next-generation entrepreneurs require different kinds of support depending on whether they are imitating, evolving, or separating from the family firm. Recognizing these distinctions can help families provide more tailored guidance and avoid misunderstandings.
Not all innovation comes with disruption. Mimicking family models can be a first step toward entrepreneurial autonomy. Encouraging these initiatives—rather than dismissing them as unoriginal—can lead to valuable outcomes for both generations.
Some next-generation members operate quietly—not to reject the family, but to avoid unnecessary resistance. These ventures often circle back to benefit the family firm, whether through knowledge sharing, market expansion, or enhanced capabilities.
Entrepreneurial success in family firms doesn’t always come from bold leaps—it often comes from small, iterative actions. Supporting the everyday practices of idea testing, relationship-building, and resource use can foster long-term entrepreneurial development.
This study adds depth to corporate entrepreneurship literature by spotlighting external venturing—a form of innovation that begins within the family but extends beyond its organizational boundaries. The research also challenges the idea that new ventures must be disruptive or clearly distinct to be valuable. On the contrary, the most successful initiatives often emerge from careful navigation of family norms and subtle, continuous negotiation.
For policy makers and educators, the study emphasizes the need to support entrepreneurial training that includes relational and cultural competencies—not just business planning. For researchers, it highlights the value of practice-based approaches that attend to lived experience, especially in emerging economies where family remains the cornerstone of economic life.
CeFEO counts more than 50 scholars and 30 affiliated researchers. Several studies and reports have consistently identified CeFEO as a leading research environment worldwide in the area of ownership and family business studies. This research project, has been co-authored by the following CeFEO Members.
Spotlight highlights research-based findings only. If you’re interested in exploring this project further or delving into the theoretical and methodological details, we encourage you to contact the authors or read the full article for a comprehensive understanding.
Ramírez-Pasillas, M., Lundberg, H., & Nordqvist, M. (2021). Next generation external venturing practices in family owned businesses. Journal of Management Studies, 58(1), 64–90
https://doi.org/10.1111/joms.12566
Spotlight is an innovative, AI-powered, online family business magazine designed to bridge the gap between cutting-edge research and the real-world needs of practitioners, owners, and policymakers. Drawing on the latest findings from the Centre for Family Entrepreneurship and Ownership (CeFEO) at Jönköping International Business School, Spotlight delivers insightful, accessible summaries of key research topics. Our mission is to keep the family business community informed and empowered by offering actionable insights, expert analyses, and forward-thinking strategies that enhance business leadership and ownership practices for long-term success.