Abstract
Background: Japan is the world's largest country in terms of the number of long-lived companies, the majority of which are family-owned small and medium-sized enterprises. On the other hand, many business owners will be retiring without successors, and the closure of these small and medium enterprises may have a significant impact on the future economy. The purpose of this study is to explore the growth process of successors in long-lived small and medium-sized manufacturing companies so that potential successors can know what they will experience as managers and be prepared for the future, and professionals who support successors can be provided with information on the growth process of successors to provide appropriate support. Methods: Semi-structured interviews were conducted with six successors of small and medium-sized manufacturing companies that are more than half a century old. Their answers were analyzed using the modified grounded theory approach to construct a hypothetical model. Results: In total, 46 concepts, four categories, 17 subcategories, and one core category with an analysis result diagram were formed. The diagram shows the successors gained confidence in management through the dilemma between autonomy and constraint in the early stage of succession, which was found in previous research. Following the initial stage, the successors responded to the crisis caused by market constraints such as being stuck in a new market, unreasonable treatment from customers, and created autonomous strategies in their businesses. Conclusions: By experiencing repetitive crises, the successors tend to acquire new perspectives toward the naturally occurring crises. This change of premise by the successors is considered as the process of double-loop learning. Relationships inside and outside the company influence the generation of this viewpoint. From a long-term perspective, a sense of unity with employees, stable employment, and the pursuit of enjoyment constitute the successors' values in this model.
Highlights
Japan has more old companies than any other developed nation in the world
The purpose of this study is to explore the growth process of successors in long-lived small and medium-sized manufacturing companies through their entire management tenure
The results are presented using the storyline or detailed explanations of the analytical result diagram shown in Figure 2 via the use of core category, category, sub-category, and concept, with examples of the statement using quotes selected from the interview data
Summary
Japan has more old companies than any other developed nation in the world. The number of centuries-old companies in Japan is 3,937, which is almost double than that of Germany, which has the second largest number of centuries-old companies with 1,850 (The Nikkei, 2012). →The purpose and benefits of the study were described from the perspectives of both the successors and the professionals who support them, along with the background of the problem of the business succession of SMEs in Japan and the government's measures to deal with it. Methods: Semi-structured interviews were conducted with six successors of small and medium-sized manufacturing companies that are more than half a century old. Their answers were analyzed using the modified grounded theory approach to construct a hypothetical model. Conclusions: By experiencing repetitive crises, the successors tend to version 3 (revision)
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