Crossroads of family business research and firm demography—A critical assessment of family business survival rates

Do family firms rise and decline in three generations? Not only since Thomas Mann's “The Buddenbrooks” has the survival rate of family firms intrigued family business scholars, practitioners and consultants. In this article, we trace the family firm survival rate to its roots and discuss its empirical basis and univocal reading. We then ask how the mortality of family businesses could be measured, and which contextual factors need to be taken into account. To this end we explore the literature on firm demography, a field which is particularly concerned with age and mortality, and identify crossroads with family business studies. We conclude by suggesting a re-conceptualization of survival rates within a larger firm demographic research framework.

► We trace the family firm survival rate to its roots. ► We discuss the empirical base and the univocal reading of the survival rate. ► We pronounce the need to consider contextual factors in reading the results. ► We question the implicit coherence between age and generation in studying mortality. ► We suggest a re-conceptualization of family firm mortality in a firm demographic framework.