Challenges in the succession process: the case of Indian family businesses in the United Arab Emirates

Abstract

Most family businesses face the challenge of developing functional operating and governance systems and structures while nurturing a critical entrepreneurial spirit among their future generations. To the best of our knowledge, this is the first systematic study that researches the dynamics of the succession process for Indian businesses in the United Arab Emirates (UAE). The results indicate that the way to smooth succession among Indian families is not exclusively reliant on effective succession planning. Instead, a business's smooth succession relies upon a succession process that is in line with the values of the family. It was also evident that mostly sons, with low levels of education and little or no external relevant work experience, took over the family businesses. Consequently, another common challenge for these family businesses relates to the successor's capacity to gain the predecessor's crucial skills and knowledge to sustain and improve the performance of the family business.