Do business-families’ dynastic ambitions boost or bust innovation?

An intriguing aspect of many family businesses concerns their dynastic outlook. Popular television series like Dynasty and Succession capture the imagination of many viewers, and the business press often puts the spotlight on long-standing dynastic family firms, such as the 1,000-year old Japanese firm Ichiwa which recently featured in a New York Times piece. Yet, among scholars, one critical question has been surrounded by controversy: are business-families that have dynastic ambitions – and thus intend to transfer the firm to the next family generation – more or less inclined to pursue risky growth opportunities by making substantial investments in innovation? In other words, does dynasty boost or bust innovation?