Influence of Next-Generation Family Champions on New Venture Creation by Business Families: An Indian Perspective

By Navneet Bhatnagar, Kavil Ramachandran
De Gruyter Handbook of Business Families | January 2023

DOI

doi.org/10.1515/9783110727968-007

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Citation

Bhatnagar, Navneet., Ramachandran, Kavil. (2021). Influence of Next-Generation Family Champions on New Venture Creation by Business Families: An Indian Perspective De Gruyter Handbook of Business Families doi.org/10.1515/9783110727968-007.

De Gruyter Handbook of Business Families, 2021

Abstract

New venture creation is critical to sustain transgenerational family entrepreneurship. Business families with diversified businesses perceive emergent opportunities distinctly from those perceived by family firms engaged in a single line of business. Driven by passionate next-generation family champions, the scope of venture creation for business families goes beyond business, including creation of social ventures. This probe examines four in-depth case studies of new venture creation by four business families in India. The study probes the drivers, the process, key players, and the dynamics of new venture creation by these business families. The study observes that the nature, intensity, and direction of the influence of family champions varies across business families, leading to different venture choices and outcomes. Interests and inclinations of next-generation members distinctly shapes business families’ venture creation and resource allocation decisions. Some business families create new business ventures for strategic depth, competitive advantage, growth and providing career path to family members. In contrast, other business families create new social ventures for a lasting family legacy or to support a social cause espoused by the next-generation family champion. Based on the observations of their new venture creation decisions and strategies followed, business families are classified into two categories: the guarded Conservatives and the adventurous Pathfinders. The chapter presents a typology of new venture creation by business families and concludes with implications for theory and practice.

Kavil Ramachandran is a Professor of Entrepreneurship (Practice) at the Indian School of Business (ISB). A founding faculty member, Professor Ramachandran established the Wadhwani Centre for Entrepreneurship Development at the Indian School of Business in 2001. He later served as the Associate Dean (Academic Programmes), before becoming the Thomas Schmidheiny Chair Professor of Family Business and Wealth Management, and subsequently the Executive Director of the Thomas Schmidheiny Centre for Family Enterprise at ISB until December 2021. He is currently the Senior Advisor, Thomas Schmidheiny Centre for Family Enterprise.

He specialises in family business, entrepreneurship, and strategy, with 36 years of combined academic experience at the Indian Institute of Management, Ahmedabad, and the Indian School of Business. Professor Ramachandran holds a PhD from Cranfield University, UK. His research focuses on family business, entrepreneurship, and strategy. He has authored and edited seven books and published extensively in reputed Indian and international journals.

His consulting experience includes areas such as family business governance, professionalisation, succession planning, strategic planning, identification of new opportunities for growth, corporate entrepreneurship and turnaround strategies in family and non-family business environments. His special expertise lies in managing the challenges at the interface of governance, professionalisation, and strategy, particularly in rapidly growing mid-size, multi-generational family businesses.

He has demonstrated special interest in mentoring young members of business families. He spearheaded the initiative in ISB offering a new MBA-level programme for the next generation of family business leaders (PGP MFAB) ,and was adjudged the “Faculty of the Year” by students in both 2018 2019, 2024. He was also adjudged the “Faculty of the Year” by students of Advanced Management Programme for Infrastructure (AMPI), 2024. In 2022, he was conferred with the Bharat Asmita Acharya Shreshtha Award (Best Indian Teacher in Management) by MIT World Peace University, Pune.

Recognising the contributions to institution building under the leadership of Ram in this area, ISB was rated as one of the best 25 business schools for family business in the world by Family Capital in 2015. He was mentioned as a “Star Professor” in that report. The Thinkers Leadership Magazine listed Ram as one of the top 100 management thinkers in India in 2014 and 2015, the only years it did such a listing. In 2022, Ram was listed amongst the top family business influencers in the world in the academics’ category by Family Capital. The combined effect of the multiple initiatives is the creation of a reassuring positive atmosphere in India towards family businesses in general and their sustainability across generations.

He has authored several case studies, worked with several well-known family business leaders and global experts, and consulted on transformation of family businesses. A frequent speaker at family business forums in India and abroad, he also contributes regularly to popular media. He has conducted numerous training programmes for family businesses on governance, professionalisation, strategic management, and entrepreneurship.

Professor Ramachandran has served on various advisory committees for the Government of India, the World Bank, and the Securities and Exchange Board of India (SEBI). His book, The 10 Commandments for Family Business, has been considered as one of the best books in this area. He has been a pioneer academic entrepreneur, propagating the message of strengthening family business in India and outside.

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