Family Business Succession Process Research Articles

Exploring Support Practices Within Family Business Succession Process: Evidence from Tunisian SMEs Family

This study aims to identify the support practices that enable a successful family business succession process. Using 17 small- and medium-sized family businesses, the authors attempt to analyse the specifics of family business succession processes and identify the support practices appropriate to each phase of the process. The results show that advice and consultation are necessary during the pre-family business succession phase. Furthermore, the results reveal that training is needed to acquire and update knowledge and information during the family business succession phase. Finally, the results confirm that mentoring can ensure social and cognitive transfer in the post-family business succession process. This paper presents a theoretical innovation, as it is the first research study to attempt to understand how supportive practices can contribute to the success of the succession process.

Intergenerational power gap and R&D investment: Evidence from China

Family firms face the dual challenge of succession and innovation. Based on the attention-based view, this study empirically investigates the effect of intergenerational power gap on corporate R&D investment, using a sample of Chinese listed family firms. We find that intergenerational power gap has a negative effect on corporate R&D investment, and this negative relationship is amplified in traditional industries and in firms with a low proportion of institutional ownership. Our findings have theoretical and practical implications for R&D investment in the family business succession process.

우리나라 자영업자의 진입에 관한 탐색적 연구

The purpose of this study is to investigate the motivation and path of self-employment for self-employed who participated in the SME education program of OO Bank-N. In this study, in-depth interview data were used to conduct research on entry of self-employment according to the labor market and labor experience of self-employed and subjects suitable for the purpose of the study were selected and analyzed using theoretical sampling methods. The results of the study are as follows. First, the motivation for entering self-employment to realize unsatisfactory working conditions and dreams for their own business, to choose self-employment as an alternative to employment, and to recommend and help family and acquaintances start their own businesses. Second, it was analyzed that the type of entry of self-employement was ① self-empl oyment after wage worker experience ② self- employment using their experience after wage worker experience ③ self-employment after retirement ④ self-employment in the family business succession process.

An Evaluation of Factors Affecting Family Business Succession for Smart Human Resource Management

Family size, ties to the family, heir preparedness level, planning and management activities, legal counsel, and human resources are some of the internal or controllable aspects that affect how a family business transfers. To evaluate the ease of generational change and the effect of each variable set on the success of the family business in the future, a complete survey of second- and third-generation family business owners/managers was done. A family business's management and treatment of its employees may be impacted by early family influences. This special issue investigates family theory in order to comprehend how families affect human resource management in family firms and how human resource management affects the important outcomes of family enterprises. It implies that careful succession planning is frequently employed as a fruitful experiment for smooth transitions. The goal of the study is to conduct a more thorough analysis of the family business succession process and to pinpoint the elements that support smooth transitions and productive outcomes.

Model for the success of family business succession in Bangkok and its metropolitan

Family businesses in Thailand are part of the country's economic development and are essential for Thailand's GDP. For many years, the family businesses have been strengthened by a family constitution that focuses on the succession of the business to a new generation that comes from family members. The study was conducted in Bangkok and its metropolitan to assess the considering factors that impact the business success of the family. The leaders of the traditional family business have no business succession planning, their successors lack potential, and they have no positive attitudes towards the family business. As a consequence, the succession of the family business was unsuccessful. Both quantitative and qualitative methods were utilized to achieve this study’s set objective. This study used multi-stage sampling as a quantitative research method. The sample comprised 560 people who were heirs of family business entrepreneurs from the second generation to the present age in Bangkok and its metropolitan areas. The study results found that the technology, innovation, attitude of family members, responsibility of family members, leadership, potential, and family constitution significantly participate in the family business succession process. The study contributes practically and also to literature.

Conflict Dynamics and Emotional Dissonance during the Family Business Succession Process: Evidence from the Tunisian Context

AbstractThis article aims to understand how emerging conflicts evolve and generate negative emotions during family firms’ succession process. Relying on previous research on emotional dissonance and conflict, we conduct a single longitudinal case study by interviewing the successor, the predecessor, and other family members in a family firm in the Tunisian context. The results show that emotional dissonance plays a critical role in conflict escalation between successors and predecessors. Family systems and cultural factors explain challenges in managing emotions; however, emotions associated with family events can facilitate the evolution of the succession process by resolving conflict. This study thus revealshowandwhyemotions and conflicts arise during the succession process.

Succession Analysis in Family Business (Case Study at PT. BJE)

This study aims to analyze the family business succession process carried out by PT. BJE in the election of son-in-law as the business successor. To understand the selection process, a succession analysis was carried out through the seven stages of the Seven-Point Star Model. The research method uses descriptive qualitative with a case study phenomenology approach. This study used primary and secondary data obtained by means of semi-structured in-depth interviews, participatory observation, and company documentation. The results showed that the stages of the Seven-Point Star Model succession planning had not yet been fully implemented by PT. BJE.

Budget and life cycle in family business in succession process,

ABSTRACT The aim of this work is to analyze how the budget need is conceived in family businesses in the process of succession. There is a gap about the reasons for using the budget in the context of a family business succession process, whose characteristics and purposes of the budget reflect their need depending on the antecedents the reasons for use. The relevance of the theme lies in understanding the intergenerational succession as a part of the life cycle in family companies and the interface with the management control system (MCS) from the need of the budget with a planning and control tool. As an impact on the area, this study broadens the field of research on budget considering its characteristics and purposes in a context of organizational transition that involves succession in a family business. We adopted the single case study with data collected through semi-structured interviews, observations, and documents. Data were analyzed from the discursive textual analysis whose focus is the contents related to succession from the organizational life cycle, changes in the MCS, and budget need. The results showed that changes resulting from the succession process on the strategies of its planning (professionalization of management, creation of the holding company, and governance) interact and influence the need of the budget. This stems from the reasons for operational planning and strategic training from its antecedents associated with the organizational characteristics of the success and renewal phase of the life cycle. The contribution of the study is based on the combination of succession in family business and budget by making it possible to reflect on the need for a specific tool (the budget) to support goal setting and decision-making in this context. It will contribute to the MCS and family business by understanding the need for budgeting in the succession process. In addition, it will validate the three-phase model of the succession process in a family business as part of the organizational life cycle.

Psychodynamics from the Perspective of Non-family Employees during a Small Family Business Succession

This study analyses changes in non-family employees' psychodynamics during the family business succession process. Based on the main principles of human psychodynamics and from a non-family employee's perspective, this study examines how changes implemented in a family business succession influence the daily interaction between family owners and non-family employees. The study has been implemented using qualitative research methods and analysis of reached information was analysed by hermeneutic analysis. Based on case study approach this study has found that employees can influence the planning and the implementation of succession but are not actually the direct participants in this process, which is reserved primarily for the new owner/successor. It is important for the employees' psychodynamic process that they are given information about the succession and the information they are given is acted upon in the manner in which it was originally described. If non-family employees can express their thoughts and possibly influence the implementation of changes, that could lead to an improvement of their overall psychodynamic balance as it relates to the family business. The psychodynamic balance affects the employees work well-being and motivation. If employees are given information that differs greatly from the actions that are implemented within the family business that increases the need to balance the psychodynamic process and further decreases the employees sense of work wellbeing and motivation.

Modelling the knowledge transfer process between founder and successor in Vietnamese family businesses succession

PurposeThe transfer of knowledge has been identified as an important part of the family business succession process. This paper examines the knowledge transfer process from the founder to the successor to understand and model the factors that influence the knowledge transfer process in the Vietnamese family business context.Design/methodology/approachThis research adopts an inductive qualitative approach, conducting face-to-face semi-structured interviews with five father-son succession pairs. The interviews with founders and successors, ten in total, formed the basis of five case studies. The cases were all at an advanced stage of the process of business knowledge transfer and family business succession.FindingsA contextualized model was developed, highlighting the main factors that influence the knowledge transfer process from the founder to the successor in a Vietnamese family business context. This model identifies the influence of factors, some of which are not commonly presented in western family business literature. These include the importance of the role of the mother in mediating the relationship quality between the founder and the successor and the successor pursuing education and external work experience to improve their cognitive and reflective abilities. The need for the affinity between family members is also highlighted as important.Originality/valueIn Vietnam, most family-run businesses are still under the control of the founder. This research provides insight into the succession process in Vietnam. This research addresses calls for further exploration into the factors that influence the transfer of knowledge in the family business succession process and to research this process in a collectivist society, both of which remain under-researched.

Succession as a sustainability factor of family business in Slovakia

Research background: The success of family businesses abroad is not measured by profit, but is judged by the number of generations that have successfully mastered the succession process. This is why family businesses in Slovakia should also focus on long-term existence. Succession in a family business must be prepared with sufficient time in advance, as this is one of the most risky moments of its future.
 Purpose of the article: Successful management of the succession process in family businesses requires several years of preparation in different areas. The aim of this paper is to assess the readiness of Slovak family companies to owner generational change in application of selected factors in ensuring the smooth transmission of family businesses to the younger generation.
 Methods: The method of research was a questionnaire based on a 5-degree Likert scale, where the respondents expressed the degree of their agreement or disagreement with the particular statement. The questionnaire was filled by sample of 412 respondents ? 206 family business owners and their 206 successors (son/ daughter). The statistical relations and correlations between variables were performed by Cronbach alpha, Spearman test, Kruskal-Walis test using EXCEL and SAS Enterprise Guide 7.1. programs.
 Findings & Value added: Slovak family companies have already passed or they are in the process of preparing or implementing the first generational change. We cannot be compared yet with family companies in Germany, USA or the Nether-lands because these firms are in the process of the fourth generation change in the ownership. The added value of this paper is the identification of deficiencies and reserves that prolong or expel the process of successful company transfer to a young generation. It is related to human capital ? the professional competence of the successor and the willingness of the founder to leave, the absence of important business documents, or the effort to cope with the process itself.

Primogeniture in Turkish Family Owned Businesses: An Examination of Daughter Succession, the Impact of National Culture on Gendered Norms and Leadership Challenge

Family owned and controlled businesses, which may be owned, controlled or operated by various family members, account for an enormous percentage of global employment, revenues and GDP. Although the majority of well-known companies are family owned, research indicates that unfortunately, only thirty percent of family businesses survive to the second generation. Therefore, successful transfer of the business to the next generation is an important issue for the family business literature. However, although succession is a vital issue for Family Owned Businesses (FOBs), the process is unfortunately very gender biased in most societies, with boys being generally favoured over girls so daughters are always excluded as candidates and other women are seldom considered as successors in family businesses. In many cases, especially in certain cultures, female members of the next generation are not even perceived as a viable option. Even in today’s rapidly changing business climate, primogeniture continues to dominate the value system of family businesses. Primogeniture is an accepted approach to family business succession planning; daughters are only considered for family business succession when all descendants are female or the daughter is the first born. This study aims to identify the reasons behind the primogeniture in Turkish FOBs. The objectives of the study were to examine the key factors identified by the incumbents related with the primogeniture. In this research study, an interpretive methodology was adopted to explore, interpret and to understand meanings of knowledge. For this research, qualitative data were gathered via in-depth open-ended interviews with 20 male FOB owners who have at least one daughter and 20 daughters working at their FOB with their fathers. The questions were designed to measure different facets of FOB demographics and culture to understand their effects on the selection process within Turkish FOBs and gender norms in the context of FOB norms, which influence both family members and the business it. This study investigated daughters’ succession in FOBs in Turkey, a developing country where women are less likely than men to engage in entrepreneurial activities and show that gendered norms are still considered when choosing the successor, in other word, primogeniture still dominates the family business succession process. Keywords: Woman entrepreneurship; Primogeniture; Family Business; Gender; Culture;

La sucesión de la empresa familiar; una aproximación teórica

La sucesión en la empresa familiar es considerada como una etapa decisiva para su continuidad. Aunque es uno de los tópicos más estudiados, solo una pequeña proporción de ellas sobrevive a cada transferencia generacional. En las economías en desarrollo como las latinoamericanas, la generación de conocimiento sobre el tema es significativa dada la importante proporción de empresas familiares en cada país, y en consecuencia su contribución económica y social. El presente trabajo es una revisión bibliográfica sobre el proceso de sucesión de la empresa familiar. Tiene por objetivo la reconstrucción de su campo de estudio para propiciar el desarrollo de nuevos trabajos. Entre los principales resultados destaca la relación entre la sucesión y la planeación estratégica, la influencia familiar y la gestión integral.

Decision-Making Challenges of Women Entrepreneurship in Family Business Succession Process

The decision-making process concerning succession issues for family businesses is crucial as it affects long term performance and sustainability. However, while succession issues in family business has been extensively studied, the decision-making process for women-owned family businesses is sparse, particularly in transition economies. This is despite the growth of women-owned businesses worldwide. This study explores the succession decision-making process in women-owned small family businesses in Kosovo using a qualitative approach. The findings suggest that group decision making is important in family businesses and plays a role in determining how gender influences succession planning. Managerial and policy implications are discussed.

Gender issues related to choosing the successor in the family business

This work focuses on the perception about the succession process in family businesses regarding gender issues and why daughters may feel inhibited or encouraged to join those firms. To achieve this, the authors developed a qualitative research based on 60 in-depth interviews with incumbents and successors who were planning or had just completed the succession process. The main findings are that even though, gender is not considered an obstacle to become successor, in fact that there are more male successors than females. Results also show that birth order influences the succession process more often if the first child is a male than if it is a female; but it is not only a predecessor's decision as many women also decide not to join the family business. Nevertheless, once they are in, family women are very much appreciated as family businesses’ managers.

Gender issues related to choosing the successor in the family business

This work focuses on the perception about the succession process in family businesses regarding gender issues and why daughters may feel inhibited or encouraged to join those firms. To achieve this, the authors developed a qualitative research based on 60 in-depth interviews with incumbents and successors who were planning or had just completed the succession process. The main findings are that even though, gender is not considered an obstacle to become successor, in fact that there are more male successors than females. Results also show that birth order influences the succession process more often if the first child is a male than if it is a female; but it is not only a predecessor's decision as many women also decide not to join the family business. Nevertheless, once they are in, family women are very much appreciated as family businesses’ managers.

Father-Daughter Succession Process in Family Businesses: Current State of Knowledge and Future Research Challenges

Succession belongs among the most discussed research topics in the family of business research. At the same time, the literature has been relatively silent on father-daughter succession despite the increasing academic and popular attention focused on female leaders worldwide. This article presents a systematic review of 20 studies focused on issues related to father-daughter succession. We identified three basic prerequisites of a successful succession: father-daughter relationship, successor’s perspective, and development of successors. In light of these prerequisites, we will summarize and discuss the findings. We argue that the research on father-daughter succession is still relatively fragmented and lacks an overall direction. Therefore, based on the systematic review, multiple directions for future research are suggested.

Passing the Marshall’s Baton: A Narrative Analysis of Gender in Family Business Succession

In this paper, we address the gendered nature of the succession process in family business. We explore how predecessors draw on multiple masculinity discourses to construct the appropriate successo...

Left in the dark: Family successors’ requirement profiles in the family business succession process

This article analyzes the requirements that family successors must fulfill to be considered suitable successors from three perspectives. We identify the recommended attributes and exigencies of family successors in the literature, generate a general requirement profile and compare this profile with predecessors’ expectations and successors’ perceptions of requirements based on data extracted from 106 interviews with 53 families. Our results for all three perspectives indicate that hard skills constitute a necessary but insufficient attribute for suitable successor candidates. Soft skills are at least as strongly appreciated as hard skills. Furthermore, because predecessors have an implicit rather than explicit understanding of family successor requirements, they often leave potential successors in the dark regarding their expectations; thus, descendants may need to guess which attributes they should contribute to the firm. We observe a systematic order of and importance ranking attached to predecessors’ expected skills that closely overlap with scholarly recommendations. We thus conclude that the process of recruiting and selecting family successors is systematic and well considered.

Insights from Canadian Case Studies on Succession and Knowledge Transfer in Family Firms

This study investigated firstly whether the family business succession process differs from non-family business succession, secondly the nature of knowledge transfer and specifically about the nature of tacit and explicit knowledge transfer between the founder and successors and thirdly the impact of the degree and nature of trust between the founder and successor is considered along with the issue of whether the level of perceived trust differs depending on the length of the relationship between the firm founder and successor. Finally the impact of the successor's gender on the tacit knowledge transfer process is noted. The contribution of this research to the founders of family business, their successors and their advisors are highlighted, the study's limitations and directions for future research are noted.