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    Family business

    Longevity in family business: Lessons from Japan

    by Peter Vogel, Toshio Goto Published February 3, 2026 in Family business • 6 min read

    Drawing on lessons from Japanese family businesses, Toshio Goto and Peter Vogel explore the drivers of family enterprise longevity while encouraging families to define success on their own terms.

    Rapid read:

    • Longevity in family enterprises is rooted in long-term orientation and values, not just financial performance.
    • The Japanese model shows that continuity can be a purpose, but it is not universally appropriate.
    • Longevity is not always the right metric of success for business-owning families.

    As the saying goes, a quarter in a family business is 25 years, not three months. This long-term orientation – combined with an owner’s mindset, systemic resilience, and a deep-rooted survival instinct – has enabled many family enterprises to span generations, and in some cases, centuries. Yet an important question remains: should longevity always be the primary objective? If so, longevity of what – the operating business, a specific activity, or the family and ownership system itself? 

    Enterprising families are naturally inclined toward continuity. In his book Beyond Survival, Leon Danco observed that corporate longevity has long been a central aspiration for business-owning families. Remaining active across generations can create significant benefits, not only for the family’s socioemotional wealth, but also for employees, communities, and the broader economy. 

    At their best, family businesses serve as anchors of purpose. They often act as the connective tissue that binds generations together, transmit values and identities, and provide a platform for contribution to society. When supported by appropriate governance such as family councils, shareholder agreements, next-generation development, and thoughtful employment and education policies, family enterprises can foster both unity and long-term prosperity. 

    Economically, their impact is substantial. Family enterprises account for a large share of global GDP and employment, and the world’s largest family-controlled companies generate trillions in revenue annually. Their enduring presence provides stability in times of uncertainty. Still, demographic expansion, geographic dispersion, and rapid technological and geopolitical change place increasing strain on the traditional family business model. How, then, do some families manage to endure for centuries? 

    Asian business people are discussing next years plans
    Japanese long-lived firms often favor cautious growth, stable partnerships, and the preservation of heritage

    The Japanese perspective on longevity 

    Japan offers a particularly rich context for exploring these questions. It is home to the world’s largest number of centenarian businesses, the vast majority of which remain controlled by the founding family. Research on long-lived firms shows that many Japanese family businesses pursue longevity not merely for economic reasons, but as a reflection of responsibility, identity, and contribution to society. 

    A frequently cited example is Hoshi Ryokan, a traditional inn that has been operated by the same family for more than 1,300 years. Its objective has never been aggressive growth or expansion, but rather continuity – serving guests, preserving tradition, and passing stewardship responsibly from one generation to the next. 

    Several cultural and philosophical elements help explain this orientation. Shinto, Japan’s indigenous belief system, emphasizes harmony with nature, respect for people, and continuity across time. These principles translate into business practices that privilege long-term relationships with employees, customers, and communities. Similarly, the philosophy of sanpō yoshi – ”good for the seller, good for the buyer, and good for the community” – encourages a multi-stakeholder view of value creation. 

    Japanese long-lived firms often favor cautious growth, stable partnerships, and the preservation of heritage. From this perspective, surviving as a business is itself a meaningful contribution to a resilient and purpose-driven society. Longevity becomes not an end in itself, but evidence of sustained relevance and responsibility. 

    Is business longevity always the right goal? 

    While the Japanese model highlights the power of continuity, it also invites reflection. Based on our global work with enterprising families, the more fundamental question is not how to achieve longevity, but whether longevity, defined as preserving a specific business, is the right aspiration for every family. 

    Younger generations may experience tension between honoring legacy and pursuing renewal, innovation, or entirely new ventures. Longevity of the operating business does not automatically guarantee long-term family cohesion, fulfilment, or wealth creation. As a result, many families benefit from broadening their definition of success beyond survival alone. 

    This is where ownership strategy becomes critical. Families face inherent trade-offs between growth, liquidity, and control. Prioritizing long-term control may support continuity but often constrains growth. Conversely, pursuing scale and transformation may require sharing or relinquishing control. Neither path is inherently superior; what matters is conscious choice and alignment with family values and capabilities. 

    Some families, like those behind global champions such as Volkswagen or Walmart, have accepted diluted control in exchange for growth. Others, such as Miele, have chosen to preserve a strong family core while diversifying into new activities. In these cases, the original business may represent only part of a broader family portfolio, shifting the focus from business longevity to family continuity. 

    The Carvajal family, recent winner of the IMD Global Family Business Award, illustrates this evolution particularly well. Facing the challenges of a fourth-generation transition, the family restructured its business, divested activities, and appointed a strong mix of family- and non-family leadership. At the same time, it invested heavily in governance, education, and entrepreneurial support to ensure that the business family – not just the legacy firm – continued to thrive. 

    Entrepreneurs and business people conference in modern meeting r
    Successful families define what longevity means for them and align their strategies accordingly
    Ultimately, there is no single model of success.

    Redefining success across generations 

    What these examples suggest is that longevity is best understood at the level of the family enterprise system. Critical inflection points – such as leadership transitions, professionalization, or changes in ownership structures – require families to adapt thoughtfully. Bringing in non-family executives or board members can enhance resilience, but it also demands clarity of purpose, strong governance, and ongoing investment in family cohesion. 

    Ultimately, there is no single model of success. For some families, continuity of a heritage business is deeply meaningful. For others, diversification, innovation, or entrepreneurial renewal better serve both the family and society. The common thread is intentionality: successful families define what longevity means for them and align their strategies accordingly. 

    True endurance lies not simply in keeping a business alive, but in enabling families and enterprises to remain purposeful, resilient, and contributive over time. 

    Conclusion 

    The Japanese experience demonstrates the strength of a long-term, values-driven approach to enterprise. It reminds us that patience, responsibility, and stakeholder commitment can sustain businesses for centuries. At the same time, longevity alone should not be the sole key performance indicator. Family unity, relevance, value creation, and the ability to renew across generations are equally important measures of success. 

    True endurance lies not simply in keeping a business alive, but in enabling families and enterprises to remain purposeful, resilient, and contributive over time. 

    Authors

    Peter Voegel - IMD Professor

    Peter Vogel

    Professor of Family Business and Entrepreneurship at IMD

    Peter Vogel is Professor of Family Business and Entrepreneurship, Director of the Global Family Business Center (GFBC), and Debiopharm Chair for Family Philanthropy at IMD, where he leads the Leading the Family Business, Leading the Family Office, and Lean Intrapreneurship programs. He is recognized globally as one of the foremost family business educators, advisors, and academics, and has received numerous awards and distinctions. He is the author of the award-winning books Family Philanthropy Navigator and Family Office Navigator. 

    Toshio Goto2

    Toshio Goto

    Research Professor at the Japan University of Economics

    Toshio Goto is Research Professor at the Japan University of Economics with an established background in both academia and business management in various capacities worldwide. He is concurrently Chairperson at the Research Institute for the Centennial Management and Executive Director at the Japanese Civilization Institute. His research is concentrated on the longevity of family businesses, worldwide.

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