The Microfoundations of the Innovation-Tradition-Paradox in Family Firms.

Family entrepreneurs are prone to paradoxical tensions due to the interconnectedness of the family and the firm. Despite their relevance in entrepreneurial practice, current research lacks methods to examine both microfoundations of and individual behavior in the management of paradoxes. We introduce the application of serious games as a method capable of simulating context-rich paradoxes in an immersive environment to analyze entrepreneurial decision-making. Therefore, we developed a serious game that simulates decision-making behavior in family firms regarding the innovation-tradition-paradox. We quantitatively analyze the behavior of 199 players and explore the relationship between player behavior and variables reflecting microfoundations of entrepreneurial decision-making. Our results indicate a positive relationship between a paradoxical mindset and socioemotional wealth and the choice for an ambidextrous firm strategy. With this study, we demonstrate the potential of serious games as a method for advancing (family) entrepreneurship research and behavioral management theories.