Balancing growth and risk: how family firms shape value creation and avoid value loss over time

Purpose: Family businesses must continually adapt their strategies to remain competitive. A key challenge is balancing value co-creation, where family members and stakeholders collaborate for positive outcomes, and value co-destruction arises from poor decisions or internal conflicts. Despite extensive research in family business management, limited attention has been given to how these firms generate innovation with high-added value and manage co-creation and co-destruction dynamics. This study examines the long-term strategic decisions that help prevent adverse situations and ensure sustainable growth. Design/methodology/approach: This research uses a longitudinal analysis of 400 family firms in two countries, Colombia and Spain, evaluating how value co-creation and co-destruction strategies evolved. The study applies quantitative methods, focusing on firms’ strategic decision-making, succession planning and alignment between family values and business goals. The data were gathered through structured surveys and analyzed using statistical modeling to evaluate the impact of key variables on business continuity. Findings: Among the main results, it is found that value co-creation fosters long-term sustainability, as long as the strategies designed by the firm are aligned with the company’s objectives. Another result shows that value co-destruction is often linked to ineffective succession planning, internal conflicts and especially resistance to innovation. Thirdly, firms that implement periodic strategy reviews and promote structured succession planning manage to mitigate the risks associated with value co-destruction. Finally, the impact of the dynamics of value co-creation remains constant in both countries, suggesting general strategic implications characteristic of family businesses. Research limitations/implications: This research focuses on two countries (Colombia and Spain) to conduct a comparative international analysis to provide more information on this type of dynamics. Future research must explore the industry’s specific effects and assess digital transformation’s impacts on value co-creation. Practical implications: The research results allow us to observe how family businesses can effectively mitigate the risks associated with the co-destruction of value. This is due to the integration of structured succession planning, continuous strategic evaluations and stakeholder participation. The results of this research provide practical suggestions for policymakers, advisors and practitioners, offering them guidance to develop practical and conceptual frameworks that support long-term strategic dynamics in family businesses. Social implications: The research’s social implications relate to enhancing sustainability in family businesses. The analysis considers variables such as economic stability, job creation and company intergenerational succession, particularly in emerging economies. The research considers that understanding and implementing the results could contribute to greater social and economic well-being in the way in which they are managed, making a real difference in the processes of family businesses. Originality/value: This study significantly contributes to the field by examining value co-creation and co-destruction in family businesses over time, emphasizing the crucial role of strategic adaptability. The research provides valuable insights into preventing business barriers, ensuring sustainable development and improving our understanding of family business management, strategic innovation and organizational resilience.