A Causal-mechanistic Perspective on Microfoundations in Family Business: The Case of Corporate Entrepreneurship

This paper is a conceptual contribution to the debate on micro- foundations in family business research. We advocate a causal- mechanistic approach to micro-foundations which is centered on the notion of causal mechanisms as responsible for the emergence of phenomena at the organizational level, such as corporate entrepreneurship in family firms. We distinguish two alternative purposes of the research process that can take advantage from it: prediction and explanation. First, we argue that knowledge of causal mechanisms can be exploited when testing hypothesis that draw on the mechanistic potential of dominant theories in family business research thus leading to better predictions. Second, we show how the mechanistic reasoning is a natural ally of major forms of explanation in the field thus improving current explanatory accounts in terms of internal validity, completeness and accuracy. The paper concludes by summarizing the epistemic benefits of the causal-mechanistic approach and offering suggestions for future research.