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Article
Publication date: 1 December 2001

Tung‐Chun Huang

Succession planning concerns the selection of talented employees to replace senior managers who leave the firm because of retirement, reassignment, or other reasons. Effective…

15548

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.

Details

International Journal of Manpower, vol. 22 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 26 December 2023

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.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 14 November 2017

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…

1377

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.

Details

Library Management, vol. 38 no. 8/9
Type: Research Article
ISSN: 0143-5124

Keywords

Article
Publication date: 1 December 2005

Sally Sambrook

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…

9348

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.

Details

Journal of Small Business and Enterprise Development, vol. 12 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 27 July 2020

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…

1708

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.

Details

International Journal of Managerial Finance, vol. 17 no. 3
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 22 May 2020

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.

Details

Journal of Family Business Management, vol. 11 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 30 December 2019

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).

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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.

Details

Journal of Family Business Management, vol. 10 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 30 November 2021

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.

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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.

Details

Journal of Family Business Management, vol. 13 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 17 August 2011

Jerry D. VanVactor

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.

Details

International Journal of Leadership in Public Services, vol. 7 no. 3
Type: Research Article
ISSN: 1747-9886

Keywords

Open Access
Article
Publication date: 31 December 2021

V.V. Renuka and Bhasi Marath

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…

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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.

Details

Rajagiri Management Journal, vol. 17 no. 1
Type: Research Article
ISSN: 0972-9968

Keywords

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