ABSTRACT

The living Nordic dynasties are outstanding business groups in terms of entrepreneurship and innovation. Mature dynasties have survived two world wars, waves of nationalization and numerous industrial shocks and financial crises. In the interwar years, many emerging Nordic dynasties disappeared from the scene and private capital was reduced dramatically. History reveals a latent tension between the dynasties and the government. The political interest of Antti Ahlstrom, a founder of a Finnish dynasty, was to improve the situation for the Finnish-speaking population in the countryside, to foster rural development. The policy of high income and corporate taxes in the Nordic countries has engaged many family representatives. A widespread view is that family businesses do well under Social Democratic governments. There is little doubt that dynasties have exploited their alliances with external companies and executives to retain and strengthen controlling interests. A social contract has legitimized dynasties and gradually propelled the dynasties into ever greater prominence and esteem.