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A system dynamics-based approach to determinants of family business growth

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Abstract

Family business growth is crucial not only for the long-term sustainability of this type of firm but also for economic growth as a whole. However, family businesses face internal and external obstacles that hamper their healthy, sustainable growth. Analyses of family business growth are critical to overcoming these barriers. By combining fuzzy cognitive mapping techniques and the system dynamics approach, this study sought to create an analysis model that allows for a more holistic perspective on determinants of family business growth, their cause-and-effect relationships, and thus their long-term behavior. The model developed is a complete, transparent, and realistic tool that enables decision makers to make better and more informed decisions. This study was grounded in the insights provided by a panel of experts in family business, who shared their knowledge and experience over the course of two group sessions. The results of the static and dynamic analyses carried out were validated by the head of department and a board member of the Southern Business Support Center of Portugal’s Institute for the Support of Small and Medium-sized Enterprises and Innovation (IAPMEI). This research’s contributions are also discussed, and suggestions are made for future research.

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Fig. 1

Source: Salmeron et al. (2019: 724)

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Source: Drmola and Hubik (2018: 5)

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Acknowledgements

This work was partially funded by the Portuguese Foundation for Science and Technology (Grant UID/GES/00315/2019). Records of the expert panel meetings, including pictures, software output and non-confidential information, can be obtained from the corresponding author upon request. The authors gratefully acknowledge the outstanding contributions of and knowledge shared by the panel members: Fernando Luís, Fernando Marques, Isabel Marques, Joaquim Fonseca, João Melo, Manuela Cardoso, and Rita Alves. The authors also would like to express their gratitude to Etelvina Nabais and Gisela Nunes, department head and board member, respectively, of the Southern Business Support Center of Portugal’s Institute for the Support of Small and Medium-sized Enterprises and Innovation (IAPMEI), for their availability and the important insights they provided during the consolidation of results phase.

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Authors and Affiliations

  1. ISCTE Business School, University Institute of Lisbon, Avenida das Forças Armadas, 1649-026, Lisbon, Portugal

    Francisco C. Marques

  2. ISCTE Business School, BRU-IUL, University Institute of Lisbon, Avenida das Forças Armadas, 1649-026, Lisbon, Portugal

    Fernando A. F. Ferreira

  3. Fogelman College of Business and Economics, University of Memphis, Memphis, TN, 38152-3120, USA

    Fernando A. F. Ferreira

  4. School of Production Engineering and Management, Technical University of Crete, University Campus, 73100, Chania, Greece

    Constantin Zopounidis

  5. Institute of Finance, Audencia Business School, 8 Route de la Jonelière, 44312, Nantes, France

    Constantin Zopounidis

  6. Department of Construction Management and Real Estate, Faculty of Civil Engineering, Vilnius Gediminas Technical University, Saulėtekio al. 11, 10223, Vilnius, Lithuania

    Audrius Banaitis

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  1. Francisco C. Marques
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  2. Fernando A. F. Ferreira
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Correspondence to Fernando A. F. Ferreira.

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Marques, F.C., Ferreira, F.A.F., Zopounidis, C. et al. A system dynamics-based approach to determinants of family business growth. Ann Oper Res 311, 799–819 (2022). https://doi.org/10.1007/s10479-020-03524-9

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