Lancaster University Management School - 54 Degrees Issue 15

with the business, and readers discover a long, affective and capable multigenerational family in the culinary business, with roots in China, and thriving in the UK. We identified three history scripting strategies that create this competitive advantage – embedding, elaborating, and building family history. Embedding family history: The family history is constantly related to the broader history of the times, forging a link between the history of the family and that of society. This embeds the business in the communities of past generations, showing how historical events shaped the family’s fate. For Sweet Mandarin, this creates affinity with communities who experienced or witnessed the same events – immigrants, Chinese, British-born Chinese, and local British. The family show a social background to their business that builds affinity with various communities, attracting customers beyond the conventional Chinese restaurant industry. It opens up the business to customers and families who used to dine at Lily’s restaurant. Elaborating family history: Past events in the family are told in relation to the current entrepreneurs, forging links between past and present. This infuses longevity in the business, highlighting a longer heritage and the contribution of past generations. This longevity is a distinct competitive advantage in an industry characterised by short business life cycles. By presenting the previous generations’ achievements, Helen and Lisa demonstrate working in the culinary business as both their fate and as a talent in their bloodline. They backdate their business and acumen from 2005 to 1950, creating longevity that transcends their own experience. New businesses often face the challenge of legitimacy, and the need to develop ties with customers. Customers are more attracted to businesses with a past, and established businesses often use this family history to build customer trust. Sweet Mandarin benefits from having a heritage perceived as valuable by customers. Building family history: This strategy highlights the influence of the entrepreneurial family, and the achievements of Helen and Lisa, their expertise in the culinary business, their devotion, and their personal stances on the dishes and the restaurant. It signals a continuity while inspiring innovation. There are two tactics here: learning from previous generations – building empathy and legitimacy for the business origins and ethos; and emphasising the achievements of the entrepreneurs – giving the current generation’s take on the business, showing their endorsements, and demonstrating how they will carry on. Building the family history allowed Lisa and Helen to establish their own legitimacy as leaders of the family business. They were able to highlight their expertise and devotion to the business, opening new chapters while creating strong links to the past. The current generation’s experiences distinguish them from previous generations, while ties to the past distinguish them from competitors, building their credibility for current and future endeavours. LESSONS TO BE LEARNED The strategies added to the quality of their products and services to enable superior growth and performance compared to competitors. Sweet Mandarin has been in profit since 2010 (£5,554), increasing steadily year-onyear until 2018 (£129,289). Family businesses should be aware of the role history can play in creating competitive advantages, and specifically how they present that history can give them sustainable advantages. Owners are often torn between tradition and innovation, between the vision of previous generations and a new direction. Our research shows that the use of history provides a practical way to balance both sides. FIFTY FOUR DEGREES | 19 Alfredo De Massis is a former Director of the Centre for Family Business within Lancaster University Management School. This article is based on Mining the Past: History Scripting Strategies and Competitive Advantage in a Family Business, by Dr Bingbing Ge, of Lancaster University Management School; Professor Alfredo De Massis, of the Free University of Bozen-Bolzano, IMD and Lancaster University Management School; and Dr Josip Kotlar, of the Politecnico di Milano. It is published in the Financial Times 50-ranked journal Entrepreneurship Theory and Practice. b.ge1@lancaster.ac.uk; a.demassis@lancaster.ac.uk Dr Bingbing Ge is a Lecturer in the Department of Entrepreneurship and Strategy, whose research is focused on family business management, entrepreneurship, and strategy.

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