Intra-family dynamics and succession planning in family businesses in South Africa: the daughter as a potential successor

Abstract

PurposeLiterature considers the succession process to be successful when both the continuity of the business and harmony within the family are preserved. This study empirically investigates intra-family dynamics with regard to daughters as potential successors in family businesses.Design/methodology/approachThe study takes place in South Africa where family businesses represent a significant amount of all listed businesses on the Johannesburg Stock Exchange. A structured survey instrument is used to collect primary data from family businesses in South Africa. The study hypotheses are statistically tested using regression analyses.FindingsResults highlight the importance of the business context (BC), intra-family cohesion (IFC), intra-family adaptability (IFA) as well as the parent-daughter relationship (PDR) in successful daughter succession planning (SP). An important insight which emerges from the findings is the extent to which a harmonious business environment is conducive in accommodating the daughter as a successor to the business.Practical implicationsFamily business owners need to be aware of the often conflicting pressures that daughters face as potential successors. Evidence-based and fit for purpose to the South African family BC processes and directives must be formulated that guide the implementation of SP. The provision of training specifically focused on gender bias issues and women empowerment programmes in family business is recommended.Originality/valueInvestigating theoretical and practical problems related to daughters in SP in South Africa is important considering that firms in African countries in general tend to be poorly managed.