Succession Strategies Research Articles

Strategic transitions: unraveling the impact of socioemotional wealth and generational cohorts on succession planning in family SMEs

PurposeThe complexity of succession in family firms is multifaceted and can sometimes lead to turbulence. While structured succession strategies offer a roadmap for smoother transitions, intergenerational differences in family small and medium-sized enterprises (SMEs) can lead to varied interpretations of an effective succession blueprint. This study synergizes the strategic entrepreneurship framework with the socioemotional wealth (SEW) perspective to probe into how formalized succession planning impacts performance in family SMEs. Furthermore, it delves into the mediating role of succession satisfaction, especially in family firms characterized by pronounced SEW and helmed by CEOs from different generational cohorts.Design/methodology/approachEmploying a comprehensive dataset from 1,833 global family businesses, this research utilizes bootstrapping regression models to discern the intertwined effects of mediator and moderator variables and their statistical significance.FindingsThe main findings suggest that succession satisfaction does matter for a good succession process and that succession plans work only in family firms with a high degree of SEW and that are led by older family CEOs (e.g. baby boomers).Practical implicationsThe results offer fresh perspectives on succession processes, with a particular focus on how to improve the satisfaction of millennial family CEOs.Originality/valueThe study uniquely combines strategic entrepreneurship and SEW to offer a holistic view of succession planning, highlighting satisfaction’s mediating role and SEW’s moderating influence. Additionally, it pioneers the incorporation of generational cohorts into the succession discourse.

Global dynamics of a competitive system with seasonal succession and different harvesting strategies

In this paper, we investigate a two-species competition model with seasonal succession and different harvesting strategies. We aim to comprehend the impact of the proportion of good season on species competition outcomes and harvesting practices. For the case of weak harvest, we establish proportion thresholds for the good season for the species. Based on these threshold settings, we determine conditions for the existence and uniqueness of two semi-trivial periodic solutions and the existence, uniqueness and stability of positive periodic solutions under certain conditions. Numerical simulations and brief discussions are presented to validate our theoretical findings.

Effect of Succession Planning Strategies on the Sustainability of Family Businesses in Nigeria

The study is a descriptive survey designed to investigate the effect of succession planning strategies on the sustainability of family businesses in Nigeria, using mentoring, training, job rotation, coaching, talent management, and internship as proxies of succession planning. The population of the study consists of 79,460 small businesses in 36 states of Nigeria and the Federal Capital Territory as captured in the database of small and medium enterprises in Nigeria. Multi-stage cluster sampling technique was used to determine the sample and the Taro Yamani formula for calculating sample size was used to arrive at the sample size of 390 small businesses. To provide for anticipated “no response”, a 5-scale Likert questionnaire for data collection was administered to 443 representatives of small businesses across the six geo-political zones of Nigeria, out of which 435 (98.2%) returned validly. The data collected was analyzed using frequencies, percentages, means, correlation, and multiple regression model coefficients to determine the effect of succession strategies on the sustainability of family businesses. 84.4% of the family businesses sampled say they engaged in succession planning, and 22.1% had a written succession plan. Results of analyzing data from the study indicate that mentoring, training, job rotation, coaching, talent management, and internship as succession planning strategies are positively correlated to the sustainability of family businesses in Nigeria with statistical significance. This is corroborated by the F-test result with the F calculated value of 202.5 and p-value 0.000 larger than the 2.01 critical F at 0.05 level of significance, implying that a significant joint impact of all the independent variables exists on the dependent variable sustainability. Further, the multiple linear regression model analysis at a five percent level of significance shows an R-squared of 0.802 which indicates that 80.2% variation in sustainability is attributed to all the independent variables. Consequently, the six hypotheses for the study were rejected as the findings of the study show a statistically significant effect of the succession planning strategies investigated on the sustainability of family businesses in Nigeria. The researcher concludes that effective succession planning will enhance the sustainability of family businesses potentially. The researcher recommends that founders, owners, and managers of family businesses in Nigeria should adopt effective succession planning strategies, with a written plan to make their business sustainable beyond their retirement or death.

Investment in innovation and international entrepreneurial performances of Chinese family businesses: from the perspective of intergenerational succession

ABSTRACT Innovation and international entrepreneurship are important paths for family businesses to achieve sustainable growth. However, there are few relevant studies on the development and inheritance of family businesses. This paper has taken China’s listed family businesses from 2007 to 2020 as a sample in order to explore how investment in innovation affects international entrepreneurial performances. The study found that family businesses with high investments in innovation had lower international entrepreneurial performances. When family businesses are inherited by the firstborn or managed by multiple generations, the degree of this negative impact will increase, while heirs with overseas work experience will reduce the negative impact. The gender and overseas educational experience of the heirs will not have an impact on the negative relationship. These findings emphasize the heterogeneous role of intergenerational succession, revise some traditional inheritance views of Chinese family businesses and reveal the important role of reasonable intergenerational succession strategies in coordinating innovation and international entrepreneurship.

Mosaic of Factors Promoting Succession Strategies in the New Financial Context of Moroccan Companies: Focus on Family Businesses

Mosaic of Factors Promoting Succession Strategies in the New Financial Context of Moroccan Companies: Focus on Family Businesses

Who is next? Consumer reaction to CEO succession in family firms

PurposeThis paper studies the impact of different chief executive officer (CEO) succession strategies on consumer evaluation of family firms. CEO succession is critical for family firms as improper succession planning has been shown to be the primary reason for high mortality rates of such firms. Furthermore, the choice of CEO (internal vs external) by family firms can send different signals to stakeholders and thereby impact their appraisal of such firms.Design/methodology/approachIn this paper, the authors use an experiment-based approach to test how the type of CEO succession (internal vs external) influences the consumer's evaluation of family firms.FindingsThe authors find that appointing an internal CEO leads to higher perception of firm capability, trust towards the firm and more favorable consumer attitudes. All these factors, in turn, lead to higher purchase intentions. External CEOs in family firms do not seem to have any de facto advantage regarding perceptions of higher capability.Originality/valueThus, the authors contribute to the literature of family firms by showing how family firm's strategic decisions during succession can affect consumer behavior.

A Monte Carlo Simulation of the Tax Burdens and Impacts Associated With Common Intergenerational Family Farm Transfer Strategies

This paper utilizes a Monte Carlo approach to simulate intergenerational farm property transfers within the context of four common succession strategies across a series of ordinary income and capital gain tax rates. Ordinary income/expenses accompany these intergenerational transfers in the form of interest income and the potential for depreciation recapture and capital gain income for all sales between the parties where transaction prices exceed basis and financing is utilized. Finally, post-transfer depreciation charges for the successor may accompany the usage of the family farm assets exchanged. The findings highlight the fact that transfers through estates represent the best pure tax outcomes (lowest aggregate tax burden), while sales transactions involve the highest tax burden. The conclusion is that it would be prudent and well-advised for everyone contemplating or engaging in intergenerational family farm transfers to ensure that tax considerations represent a focus for evaluating, determining, and selecting the best timing and course of action.

The Time to Start Succession Planning is Now

The time to begin planning is now. Retiring, selling the practice, or relocating can overtake you rapidly. If you haven’t preplanned your exit and succession strategies, you will find yourself short on time.

Endocrine disrupting activity in sewage sludge: Screening method, microbial succession and cost-effective strategy for detoxification

Sewage sludge (SS) presents a high agronomic potential due to high concentrations of organic matter and nutrients, encouraging its recycling as a soil conditioner. However, the presence of toxic substances can preclude this use. To enable the safe disposal of this waste in agriculture, SS requires additional detoxification to decrease the environmental risks of this practice. Although some alternatives have been proposed in this sense, little attention is provided to eliminating endocrine-disrupting chemicals (EDCs). To fill this gap, this study aimed to develop effective and low-cost technology to eliminate EDCs from SS. For this, a detoxification process combining microorganisms and biostimulating agents (soil, sugarcane bagasse, and coffee grounds) was performed for 2, 4, and 6 months with aerobic and anaerobic SSs. The (anti-)estrogenic, (anti-)androgenic, retinoic-like, and dioxin-like activities of SSs samples were verified using yeast-based reporter-gene assays to prove the effectiveness of the treatments. A fractionation procedure of samples, dividing the target sample extract into several fractions according to their polarity, was conducted to decrease the matrix complexity and facilitate the identification of EDCs. A decrease in the abundance and microbial diversity of the SS samples was noted along the biostimulation with the predominance of filamentous fungal species over yeasts and gram-positive bacteria and non-fermenting rods over enterobacteria. Among the 9 EDCs quantified by LC-ESI-MS/MS, triclosan and alkylphenols presented the highest concentrations in both SS. Before detoxification, the studied SSs induced significant agonistic activity, especially at the human estrogen receptor α (hERα) and the human aryl hydrocarbon receptor (AhR). The raw anaerobic sludge also activated the androgen (hAR), retinoic acid (RARα), and retinoid X (RXRα) receptors. However, no significant endocrine-disrupting activities were observed after the SS detoxification, showing that the technology applied here efficiently eliminates receptor-mediated toxicity.

Understanding Family Firm Intentions to Use Private Equity: A Theory of Planned Behaviour Perspective

Abstract Although past research suggests that family firms are less likely to use private equity (PE) financing, further research is required to identify the underlying reasons for such behaviour. Using the theory of planned behaviour and based on the analysis of data collected from 254 family firms, we identify the factors that explain a family firm’s intentions to use PE. Family owners are more likely to plan to use PE when they have a favourable attitude toward PE, their intended succession strategy involves relinquishing control by selling the business sometime in the future, and they have a good understanding of PE.

Succession management and corporate sustainability in Ghana: a leadership succession paradox

PurposeA core responsibility of organizational leaders in a world of increasing competition for best talents is positioning right persons and plans for sustainable growth and progress of their respective organizations. However, attracting top talents for key positions is meaningless if it is not backed by winning retention or succession strategies. This paper aims to assess succession management techniques in the Nzema East District (NED) of Ghana to determine incumbent reliability on its own succession knowledge, practice and sustainability.Design/methodology/approachThrough a cross-organizational investigation, this study used qualitative approaches to explore succession knowledge and practice as they relate to effective management and sustainability of selected NED organizations. In all, 60 purposively selected participants were involved in the study.FindingsThis study revealed not only that most NED organizational leaders have no succession plans but also that some senior management officials of these organizations, much as their subordinates, lack knowledge and practice of the concept altogether. It also emerged that a leadership succession paradox, where management expressed profound interest in succession planning (SP) learning and practice, adopting SP as a strategic tool and in using SP as insurance for sustainability of NED firms, but presides over the contrary, characterized much of NED management activity.Research limitations/implicationsAs a case study, this research is limited in terms of generalizability, but its implications are quite limitless.Originality/valueThe originality of this study lies in an emerging leadership succession paradox where business executives advocate what, in practice and theory, they are themselves opposed to. Contrary to the logic that we practice what we learn, succession management in NED organizations is not only unethical but also paradoxical. This study has not been published and is not being considered for publication anywhere else.

General Manager Succession in Multinational Enterprise Subsidiaries

This dissertation, based on interviews with over 40 managers and quantitative data on over 1,900 foreign subsidiaries, aims to provide new insights regarding subsidiary general manager (GM) changes in multinational enterprises (MNEs). I study continual GM change, individual succession event, the decision-making process through which different types of subsidiary GM successors are selected, and how they link to subsidiary performance. I found that GM succession decisions are path dependent and evolving, can be influenced by MNE environments, and need to be based on both GM successor nationality and origin. My dissertation underscores the complexity of subsidiary GM succession and bridges succession strategy with implementation.

Family influence and succession strategies in private businesses at the cusp of leadership change: comparison between family firms and lone founder enterprises

PurposeThis paper investigates the impact of family influence measured by the F-PEC scale on private enterprise (both family firms and lone founders) leadership succession strategy.Design/methodology/approachThe research dataset is comprised of 390 private enterprises whose head offices were situated in the voivodeships of Lower Silesia and Wielkopolska in Poland. The authors collected data through CAPI (computer-assisted personal interviewing) method, as well as through comprehensive, structured interviews with company owners. Data were analysed using hierarchical logistic regression for each type of succession strategy.FindingsThe results suggest that increased family influence does not necessarily lead to intra-family leadership succession in private enterprises. Importantly, a range of findings contradicted authors' predictions. The relationship between the overall F-PEC scale values signifying the multi-faceted family influence over the business and the choice of internal successor was weakly negative for the total sample; also, the higher the overlap between family and business values and the higher the commitment to family business, as evidenced by the Culture subscale, the lower was the occurrence of intra-family successor choice in the population of lone founders. The Culture subscale also increased the prevalence of lack of succession planning in the sample of lone founders.Originality/valueWhile several studies suggests that family firms may be more prone to choose an intra-family succession scenario, it remains unclear how lower levels of business and succession experience, may influence the successor choice. Indeed, some studies suggest that a strong family influence over a business, may stimulate family firms to choose a family outsider as a business leader. Therefore, the key contribution of this study is contextualizing the response to an ongoing succession debate. This study investigates the strategic choices of companies in the first generation of ownership operating in Poland, which serves as an example of a post-transition economy. While the characteristics of this economic environment may be unique, the authors discuss how the surprising findings may add to the understanding of the general succession processes present in private enterprises.

Stewardship theory of corporate governance and succession planning in family businesses of UAE: views of the owners

PurposeThis paper aims to explore corporate governance (CG) and succession planning in family-owned businesses in the United Arab Emirates (UAE).Design/methodology/approachSemi-structured interviews are conducted with 16 owners and heirs of UAE family businesses. The interviews – face-to-face and asynchronous electronic – are conducted instead of a questionnaire to get an in-depth analysis of the topic in the context of both medium- and large-sized family businesses.FindingsThe responses are mixed with regard to governance challenges (duality, gender, internal control, transparency, etc.). The majority of the interviewees indicate that succession planning remains one of the biggest challenges for family businesses in the UAE. Fifteen of the sixteen interviewees document that a sound succession strategy must be in place to ensure the continuity of the business and prevent future disputes among potential successors. Similarly, the respondents also emphasise the importance of transparency and accountability for the sustainability of family businesses. The sustainability of family businesses relies on many aspects, such as national regulations, corporate systems and the succession process. Finally, most of the respondents from medium-sized companies opined that incorporating CG is a time-consuming and expensive process.Practical implicationsThe interviewees supported stewardship theory in case family members are occupying positions on the board as they have more long-term commitment and a greater sense of belonging to the business (socio-emotional wealth) compared to non-family members. The interviewees acknowledge that the lack of professionalism and conflicts of interest among family members can be offset by recruiting non-family members.Originality/valueFamily businesses are particularly significant in the Arab world as they account for over 60% of gross domestic product (GDP) and use above 80% of the workforce which make them interesting research subject. In addition, this paper explores the CG challenges faced by both large- and medium-sized family businesses in the UAE within the theoretical framework of stewardship theory.

Family entrepreneurship and business sustainability in today's world: manufacturing firms in focus

This work examined family entrepreneurship and business sustainability in manufacturing firms. It adopted a descriptive survey which is a questionnaire-based technique to sample opinions and derive answers to the challenges of family entrepreneurship and business sustainability. The primary data that were used for analyses were responses gathered from business owners, traders and artisans through the administration of structured questionnaires. Percentage frequency counts were used to analyze the distribution of the demographic variables of the respondents; while the 3.5 mean decision rule was used to conclude the research questions. Likert scale with SPSS was used to analyze and obtain the mean of each item in the research question. A T-test score of 0.05 level of significance was used to determine the relationship between the variable of the hypothesis; also with SPSS. The study showed that pressure to hire family members and strong commitment are not factors to consider for business sustainability. Hence, a Family entrepreneur succession strategy must be put in place ahead of time by developing a succession plan which can enhance sustainability; and real management succession must be included in the strategy. Without a people- and market-focused strategy, a such succession plan will fail and sustainability will be defeated.

EFFECT OF SUCCESSION MANAGEMENT PRACTICES ON PERFORMANCE OF INSURANCE FIRMS

Purpose: The study aimed to determine effect of succession management practices on performance of insurance firms.
 Methodology: A desk-study method was adopted.
 Findings: A deliberate and methodical effort made by an organization to maintain leadership continuity in important positions, preserve and cultivate intellectual and knowledge capital for the future, and stimulate individual progress is what we mean when we talk about succession planning. Despite the fact that research has demonstrated the significance of carrying out appropriate succession planning, a significant number of businesses continue to function without a defined succession plan. Our research aims to determine whether or not there is a correlation between the use of succession management methods and the level of performance achieved by insurance companies. Even though succession planning is critical to the success of a company, many businesses still don't make the effort to prepare for leadership transitions, which can have devastating effects on the business. In order to adequately prepare for executive changes, succession planning is strongly suggested for insurance businesses due to the features of these companies.
 Unique contribution of theory, practice and policy: The research suggests that organizations should implement replacement planning as well as succession planning since these two types of planning, when combined, can reduce the likelihood of a company failing to meet its financial obligations. It is critical for organizations to develop succession strategies that are robust and fully vested. It is important for companies to pay attention to the standard of education provided to employees who may fill future leadership roles.

A review of succession strategies in family business: content analysis and future research directions

Abstract Family firms (FF) represent an important business segment worldwide, contributing greatly to their country's GDP and social well-being, giving employment and contributing to communities' development. Due to their particularities, these organizations also face various challenges, one of the most relevant being inter-generational succession – transversal to all FF and their consequent sustainability over time. Given the importance of this issue, through a systematic literature review (SLR), the intention is to provide a general, wide-ranging view of the succession strategies most used by FF, mapping the existing literature. A total of 84 articles from the Scopus database were analysed. Through content analysis and bibliographic coupling techniques (VosViewer), four thematic groups of articles were identified, namely: (i) socio-emotional wealth and corporate governance, (ii) leadership and inter-generational conflicts, (iii) managing succession process and (iv) succession planning drivers. These themes/clusters originated a theoretical framework that depicts the investigation status of the field, and detailed suggestions for future investigations by cluster were also provided. Despite the relevance and long age of succession in FF, this is the first SLR to directly address succession strategies, offering implications for academics and practitioners, to guide a smooth succession.

CONFLICT MANAGEMENT AND SUCCESSION IN FAMILY-OWNED SMALL BUSINESSES

Family-owned small businesses generate approximately 44% of all U.S. economic activity making them essential to the nation’s economic health. Unfortunately, they often struggle with a variety of challenges, including succession. While the development of models and theoretical understandings of how succession may occur in family-owned small businesses is helpful for extending the related body of literature, practical research is needed to better understand the ways succession is handled among the key stakeholders, including the incumbent, the successor, and the family. The purpose of this qualitative multiple case study was to explore conflict management and succession strategies employed by leaders and employees of family-owned small businesses. Data were collected via interviews with nine people from three family-owned small businesses located in the upper Midwestern United States. A total of five main themes emerged, including Employees’ perceptions and their communication styles determine succession strategies, the nature of succession depends on communication, fostered succession through keeping customers happy and succession planning, succession challenges that leaders and employees encounter, and success was demonstrated by internal and external motivators. Eight subthemes emerged, including keep customers happy, agreeable communication, succession planning, knowledge sharing, conflict, motives, do what needs to be done, and commitment to organization. Findings from this study shed light on ways conflict management and succession strategies employed in family-owned small businesses may be improved to help these businesses overcome common challenges and ensure survival from one generation to the next.

Response of different crops and weeds to three biotypes of Meloidogyne graminicola: crop rotation and succession strategies for irrigated rice fields

Summary Rice, one of the most consumed cereal crops worldwide, is commonly grown under flooded conditions, which directly influences the nematode community. Meloidogyne graminicola is the predominant species in rice fields, causing significant damage and requiring integrated management practices. This study aimed to investigate the response of different Poaceae crops, soybean, and common weeds of rice to three biotypes of M. graminicola (G1, G2 and G3) recently detected in Brazil. The highest reproduction factor (RF) for the three nematode populations was detected in the weeds Echinochloa colonum and E. crus-galli, followed by rice and Italian ryegrass. Wheat ‘TBio Sonic’ and millet ‘ADR 500’ served as poor hosts to the nematodes, whereas black oat, white oat, signalgrass, millet ‘ADR 905’, maize, wheat ‘TBio Toruk’, and soybean acted as non-hosts (RF < 1) in both experiments. Of the three M. graminicola biotypes, G1 was the most aggressive, followed by G3 and G2 (lowest RF values). The findings of the current study can support the selection of crop rotation or succession approaches for the management of different biotypes of M. graminicola in irrigated rice fields.

ЭЛЬФЛЕДА, ИГУМЕНЬЯ УИТБИ, В АНГЛОСАКСОНСКОЙ АГИОГРАФИЧЕСКОЙ ТРАДИЦИИ РУБЕЖА VII–VIII ВЕКОВ

The paper focuses on the representation of Aelffled, abbess of Whitby, in hagiographical works of Anglo-Saxon church writers at the turn of the 7th and 8th centuries. The research is based on Stephen of Ripon’s live of Saint Wilfred of York and two lives of Saint Cuthbert, composed by an anonymous monk of Lindisfarn and Bede the Venerable. Within the first centuries after the Christianization of England, the authority of noble Anglo-Saxon abbesses was based on their kin relations with the ruling houses. A member of Northumbrian royal dynasty, Aelffled was one of the most powerful women in England of her time. She took interest in written culture, succession strategies, and church politics. Her circle of social contacts stretched far beyond the monastery walls. In the life of Saint Wilfred, Aelffled is shown as a prominent public figure. The hagiographic tradition devoted to Cuthbert of Lindisfarn reveals her emotional world, personal interaction with the wonderworker and her involvement in the affairs of Northumbrian royal house. Literary portraits of the second abbess of Whitby illustrate the high social position of noble ladies who were at the head of Anglo-Saxon double houses, as well as the dubious attitude of church milieu towards their political activities. Among other factors that determined Aelffled’s portrayal by her contemporaries were the circumstances of their works’ composition, individual biographic features of the saints to whom the vitae were devoted to, and the narrative’s micro-context. Based on the comparative and contextual analysis, the author attempts to revise the attitude expressed by modern gender historians about Bede’s hostility towards abbess Aelffled.