Traditions are important to family businesses. Founders don’t only pass on ownership to the next generation, they also pass on traditions.
Early studies suggest that traditions were an impediment to change because they burdened the family business with history. For instance, traditions can make family businesses risk-averse and less innovative because the preservation of the status quo trumps anything else. For example, in some business families leadership is always passed on to the eldest son — despite the presence of more qualified and committed younger siblings.
