Meanings of Intrafamily Succession and Transgenerational Intent in Business Families

Abstract

We offer guidelines regarding how business family parents who wish to pass the family business to the next generation may best generate transgenerational intent in their children. Our recommendations derive from making two distinctions that are implicit in studies on transgenerational intent. First, some predictors identified by scholars as having influence over children’s transgenerational intent cannot be manipulated by parents; some can. Second, there are two meanings to intrafamily succession in business families: personal choice and family obligation. Accounting for these two insights, we suggest that, given meaning context, certain parental tactics will be more practical and effective than others.