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1 – 10 of over 7000Succession planning concerns the selection of talented employees to replace senior managers who leave the firm because of retirement, reassignment, or other reasons. Effective…
Abstract
Succession planning concerns the selection of talented employees to replace senior managers who leave the firm because of retirement, reassignment, or other reasons. Effective succession planning emphasizes minimizing disruption and dislocation arising from such personnel changes, with a view to implementing business strategy and achieving organizational goals in a smooth and continuous manner. Although succession planning is an essential requirement for the long‐term development and success of business enterprises, previous studies have rarely investigated the empirical relationship between succession programs and human resource outcomes. This study employs empirical data collected from business firms in Taiwan to address that question.
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Nupur Pavan Bang, Andrea Calabrò and Alfredo Valentino
The complexity of succession in family firms is multifaceted and can sometimes lead to turbulence. While structured succession strategies offer a roadmap for smoother transitions…
Abstract
Purpose
The 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/approach
Employing 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.
Findings
The 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 implications
The results offer fresh perspectives on succession processes, with a particular focus on how to improve the satisfaction of millennial family CEOs.
Originality/value
The 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.
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Gihani S. Rajapakse and K. Kiran
The purpose of this paper is to explore succession planning in academic libraries, specifically to understand how succession planning is carried out and how the decisions-making…
Abstract
Purpose
The purpose of this paper is to explore succession planning in academic libraries, specifically to understand how succession planning is carried out and how the decisions-making styles of library managers influence each stage of the succession planning.
Design/methodology/approach
A qualitative approach was used to gather data through a document analysis and interviews with library managers at four Sri Lankan university libraries. Data analysis was done applying the framework analysis (FA) tool.
Findings
The study revealed that succession planning has been practiced in Sri Lankan university libraries to develop a bench strength, skilled backup for key positions at all levels, while inculcating leadership competencies in their respective positions. The dominant decision style is the identifiable decision-making style within the succession planning process.
Research limitations/implications
The volume of the data obtained depends largely on the participants’ responses, and the interpretation of the data is subjected to minimum personal biasness of the researcher.
Practical implications
An understanding of how decision-making styles influence practices of succession planning contributes to assist library managers to carry out succession planning within the limitations of their autonomy to do so. The findings of this study benefit library managers in recognizing their own decision-making styles and the level of succession planning they have achieved.
Social implications
Library managers’ decision-making style can have an influence on how succession planning is carried out successfully at an academic library to ensure continuity of the library’s mission and vision.
Originality/value
This is the first known study to investigate how decision-making style of the manager influences each level of the succession planning at an academic library. The use of a systematic FA method for the qualitative data analysis reveals trustworthy results.
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The paper aims to explore some of the issues in voluntary succession associated with finding and successfully developing principal successors to ensure the survival and growth of…
Abstract
Purpose
The paper aims to explore some of the issues in voluntary succession associated with finding and successfully developing principal successors to ensure the survival and growth of small firms. It highlights the key issues identified, including recruiting employees with potential, considering the work/career motives of potential successors and ways of transferring organisational and personal/tacit knowledge from the owner‐manager to the successor, whether an internal employee or a new purchaser. An initial, simple model is presented, identifying three types of knowledge transfer and two tiers of succession.
Design/methodology/approach
Literature from entrepreneurship, organisation studies and human resourcing highlights the issues associated with succession planning. Qualitative research provides empirical data from four owner‐managers and employees.
Findings
Insight into the reasons why it is difficult to plan voluntary succession are provided.
Research limitations/implications
A recognised limitation of this research is the small sample size. Further research is required to explore whether these issues – and the proposed model – are indeed relevant across other small firms, and whether there are any differences in succession planning between growth and non‐growth oriented firms, and between family and non‐family firms.
Practical implications
The model can be used to analyse succession planning issues and develop successors.
Originality/value
The paper offers new insights into succession planning and the model provides a framework for developing successors.
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George Mihaylov and Ralf Zurbruegg
This article examines the relationship between financial risk management and succession planning in family businesses. Motivated by the Theory of Planned Behaviour, we hypothesize…
Abstract
Purpose
This article examines the relationship between financial risk management and succession planning in family businesses. Motivated by the Theory of Planned Behaviour, we hypothesize that the use of professional risk management practices is associated with an increased likelihood that businesses adopt professionalized approaches to succession planning. We then investigate if succession planning professionalization is, in turn, positively related to the financial performance of family businesses.
Design/methodology/approach
We apply binary probit and ordered dependent variable regressions to unique data generated from a survey sample of Australian family businesses. To check the robustness of our results to potential endogeneity concerns we apply difference tests to propensity score matched sub-samples from our original cohort of respondents.
Findings
The results show that, in contrast to verbal or absent succession arrangements, formal written succession plans are both positively associated with the use of financial risk management practices and with superior financial performance in family businesses.
Originality/value
Our arguments and findings suggest that active financial risk management provides a platform for planning succession in family businesses, and that this links with improved short-term financial performance. In light of the critical role that succession plays in ensuring long-term business sustainability, our findings provide important and novel insights into the conditions under which family businesses are most likely to use formal professionalized succession planning.
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Cláudia Matias and Mário Franco
The main objective of this study is to understand the role that family council and protocol can have in the planning process of family companies.
Abstract
Purpose
The main objective of this study is to understand the role that family council and protocol can have in the planning process of family companies.
Design/methodology/approach
To reach this general objective, the qualitative approach was used using multiple case studies: seven Portuguese family companies. Data collection techniques, interviewing, direct observation and documentary analysis were used.
Findings
Based on the empirical evidence, it is concluded that the family council and family protocol help succession planning and favour the continuity and survival of the family business. However, other working groups also support the entire planning process, such as the cousin generation meeting and the New Generation Monitoring Committee (or Mentoring Committee). The development of future personal plans for the younger generations may lie in this Committee, which assists and guides the younger family members.
Practical implications
This study is pioneering in Portugal because it analyses the use of new instruments that helps the succession planning process in family firm context: the family council and family protocol. These managerial mechanisms allow to achieve the success, allowing family conflicts to be minimized, the continuity of family firms and avoiding their mortality.
Originality/value
The study contributes to increasing knowledge about the family council, the family protocol, family firm succession and its planning. It is important and innovative by studying those topics in depth, their connection being little explored in the literature. This study can be seen as a benchmarking for governance practices in other countries.
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Rose Haynes Kiwia, Kenneth M.K. Bengesi and Daniel W. Ndyetabula
The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs).
Abstract
Purpose
The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs).
Design/methodology/approach
The quantitative research approach and a cross-sectional research design were employed. The probability sampling technique was used to draw 219 respondents from the sampling frame. A structured questionnaire was used for data collection. Descriptive statistics and independent samples t-tests were used for data analysis.
Findings
It was revealed that most of family-owned SMEs founders in the study area had mechanisms for succession planning for their businesses. Also, there is a difference in business performance when successors are selected and prepared by business founders compared to when they are selected and prepared by other family members. Successors selected and prepared by business founders performed better in business than successors who were selected and prepared by other family members.
Research limitations/implications
This study employed a quantitative research paradigm methodology, which limits deep discussion with respondents. Future studies could consider using a qualitative research paradigm methodology.
Originality/value
The paper presents succession planning process experience in family-owned SMEs in the study area, specifically the existence of succession planning in family-owned SMEs. It also shows a difference in business performance between the two investigated groups. This paper will benefit business founders, family business successors and researchers.
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Mira Bloemen-Bekx, Frank Lambrechts and Anita Van Gils
This study explores how and when intuitive forms of planning can be used in a family firm's succession process.
Abstract
Purpose
This study explores how and when intuitive forms of planning can be used in a family firm's succession process.
Design/methodology/approach
The study uses an extended focus group meeting, consisting of individual, group and subgroup discussions with seven highly experienced external family business advisors in the Netherlands to gain a holistic understanding of the succession process and its underlying logic. The study also employs pre- and post-group questionnaires.
Findings
This study reveals that advisors perceive intuitive forms of planning as an integral part of the succession process, with the latter containing both intuitive and formal logic and activities. Both logics are used situationally and flexibly to deal with the uniqueness and unpredictability of the succession process and to build strong relations and manage relational dynamics in business families to address tasks, dilemmas and contingencies.
Originality/value
The succession process is an important part of business families' achievement of transgenerational intent. Creating commitment among potential successors begins when they are children, and understanding the role of the more intuitive forms of planning during the succession process will provide us with a more holistic perspective on its dynamics.
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The purpose of this paper is to present a collaborative communications model and relate information to succession planning for organizations facing imminent change.
Abstract
Purpose
The purpose of this paper is to present a collaborative communications model and relate information to succession planning for organizations facing imminent change.
Design/methodology/approach
Using a review of existent literature, this work examines and expounds upon the impact of planning effectively for transitions between entities.
Findings
The paper presents a collaborative communications model for a manager that is based on four tenets – condition setting, planning, execution, and process evaluation. Within each of these tenets are elements of communication, mentorship, leader development, and acceptance (trust) among stakeholders to ensure two entities transition appropriately.
Practical implications
Key tenets of leadership are often missed when developing strategies for organizational transition. This work examines how communicating collaboratively is linked to succession management and can aid managers in understanding some implications of ill‐developed planning efforts.
Social implications
In an applied sense, this model provides health care managers with concepts related to effective change at both the individual and organizational levels. While this work is directed toward managing transition among health care organizations and personnel, the information is equally applicable to a broader audience.
Originality/value
While there is a dearth of literature examining succession management in a variety of industries, little information is directed specifically toward health care leadership. This paper provides concepts related to effective risk mitigation in succession management.
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The aim of this research is to analyze empirical evidence of the effect of governance structure (GS) on perceived success of the succession process. It is also reported that in…
Abstract
Purpose
The aim of this research is to analyze empirical evidence of the effect of governance structure (GS) on perceived success of the succession process. It is also reported that in India, family firms have a more informal organization structure and governance and have an informal and unplanned approach to bringing the successors into family business. Previous studies have reported that GS is an important factor for a successful succession process. This study examines the role of management succession planning as an intervening variable to achieve perceived success of the succession process.
Design/methodology/approach
Data have been collected using a questionnaire schedule with 113 respondents who are successors from family business firms in Kerala, India. The study uses snowball sampling technique. Partial least square-structural equation modeling has been used to do data analysis.
Findings
The results of the study showed that GS has a significant positive effect on the success of the succession process. GS has a significant positive effect on management succession planning. Management succession planning partially mediates the relationship between GS and perceived success of the succession process.
Research limitations/implications
The results of the study indicate the effect of GS on the relationship between, perceived success of the succession process and management succession planning. The mediating role of management succession planning in the above relationship is also confirmed. Therefore, before starting the succession process a good GS should be put in place for ensuring the success of the succession process. Family firms must implement the succession plan well to make the succession process successful.
Originality/value
The main contribution of the study is to empirically investigate the effect of GS and management succession planning to enhance the success of the succession process.
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