Federico Visconti

Millennials, those born between the end of the ‘70s and the beginning of the new millennium, are accustomed to the limitless possibilities of the online world, where local or even country borders are no barrier. They are now the largest living generation, according to the Pew Research Center. As they begin moving into the management ranks of their family firms, they can be more fearless in helping family firms expand their customer base worldwide. But our study of 92 Italian family firms revealed an important caveat: Millennials work harder and more successfully to expand their family firm globally if their CEO is a fellow millennial and is not a family member. Our research, published in the Journal of Family Business Strategy, suggests that non-family peers can motivate millennials better than parents or other older relatives in the firm, and help increase “export intensity,” or the weight of international sales to total revenues. Our research takes place during a time when many family firms are seeking to expand their markets, but older generations may be more hesitant to do so because they are newer to technology and have grown up with a different worldview. Italy is the perfect setting because family businesses are the backbone there, accounting for nearly two-thirds of all companies with annual sales of more than 20 million euros (nearly $21 million.) Millennials also account for about 28 percent of the Italian population.