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1 – 10 of 923Nupur 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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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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Arpan Upadhyaya and Sunaina Kuknor
The paper examines the succession management strategies and the preparation level of heirs in the context of family-owned educational institutions in Nepal.
Abstract
Purpose
The paper examines the succession management strategies and the preparation level of heirs in the context of family-owned educational institutions in Nepal.
Design/methodology/approach
Sixteen in-depth, semi-structured interviews with the institution's leader were conducted. Each interview was transcribed using content analysis. Several themes and new items emerged that define the institutional strategies in succession management.
Findings
The paper provides insight into the challenges of implementing effective succession management strategies. The identified themes are traits, processes, challenging aspects and effective plans. The study's findings show the lack of awareness about the importance of succession planning among the institution owners due to the availability of limited resources. The paper also provides some insights into how family ownership and management are done and the lack of formal processes in succession management strategies.
Practical implications
This paper offers readers the chance to think about succession planning strategies. Also, it adds value in their critical analysis of the succession plan. The study advised the learners to consider additional elements that can impact succession planning, such as experience, educational requirements and their desire to work. It will aid researchers in considering the societal perspective of the successor, which is also a significant worry.
Originality/value
It focuses on a specific context, private schools in Nepal, and examines the challenges they face in implementing succession management strategies. The paper tries to identify the approach that may reveal potential solutions that have not been considered. The paper aims to clearly articulate the unique contributions of the study and explain how it advances the existing literature on succession management.
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Nazia Keerio and Abd Rahman Ahmad
Succession planning is an emerging area for research in higher education institutions worldwide; however, literature is scarce in the context of developing countries like…
Abstract
Purpose
Succession planning is an emerging area for research in higher education institutions worldwide; however, literature is scarce in the context of developing countries like Malaysia. The factors that have an influence on the execution of succession planning in public universities are the primary goal that has been set for achieving the study's goal. Moreover, the development of leadership in institutions has been taken by adopting formal succession planning. This study aims to be explore the factors that can contribute to the successful execution of the plan, particularly in higher education institutions in Malaysia.
Design/methodology/approach
The study employed the qualitative approach. The registrars have been selected by using purposive sampling technique for face-to-face interviews from five public research universities of Malaysia. The in-depth data can be collected at research universities as they are old and comprehensive universities of Malaysia. The data were analysed through thematic analysis.
Findings
The number of factors that have been revealed through the findings are as follows: organisational culture, the support of top-level management, the strategic plan, the reward, the champion from top-level management and the budget. Further, the public universities of Malaysia required ensuring that all employees were aware of succession plan initiatives taken by institutions, although the system was challenged by not taking these factors into account.
Originality/value
The primary data have been collected to provide the insight regarding opportunities and challenges encountered in the implementation of succession planning in Malaysian public universities.
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Diallo Oury Oury Bailo, Arif Hassan, Suhaimi Bin Mhd Sarif and Anwar Hasan Abdullah Othman
The aim of the paper is to identify the key factors that affect Guinean family business (FB) succession planning. The study also evaluates the impact of these factors on the…
Abstract
Purpose
The aim of the paper is to identify the key factors that affect Guinean family business (FB) succession planning. The study also evaluates the impact of these factors on the succession planning process to ensure business continuity.
Design/methodology/approach
This descriptive quantitative research is based on a survey of 383 family businesses FBs in Conakry, the capital city of Guinea. The structural equation model (SEM) was used to analyze and validate the model featuring factors that influence family business FB succession planning (FBSP). The Theory of Stewardess and the Theory of FB Rivalry have been employed in the study.
Findings
While the incumbent attributes, firm attributes, and estate tax were revealed to have no significant influence on succession planning, the successor attributes and the family relationship significantly affected succession planning. Besides, undesirable domestic relationships among children of different mothers from polygamous families had an indirect impact on business succession planning.
Research limitations/implications
The limitations of the study include the population of the FBs being restricted only to those located in Conakry, the capital city. The study did not consider other regions and cities of Guinea. Besides, the grouping of attributes or characteristics was problematic, and studying each attribute separately as an independent variable would be much better. Finally, the limited literature and available data on Guinean FBs in general and succession planning generalize the findings to be done cautiously. Therefore, more studies are needed on FB succession in the country to further confirm these findings.
Social implications
The study may help ensure social solidarity based on the findings of factors associated to polygamous families in relation to businesses.
Originality/value
Few studies have been done on FBs in Conakry. Besides, putting attributes or characteristics into categories has been presented. Moreover, there is inadequate relevant literature and data on Guinean FBSP. Considering these limitations, the generalization of the findings should be done with caution. Therefore, this study touched on the issue of family business succession in Guinea which substantiates the findings.
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Drawing on the theory of planned behaviour, this research aims to investigate systemically if and how incumbents and successors share attitudes, social norms and perception of the…
Abstract
Purpose
Drawing on the theory of planned behaviour, this research aims to investigate systemically if and how incumbents and successors share attitudes, social norms and perception of the feasibility of their business succession.
Design/methodology/approach
Qualitative research carried out on a group of small Italian family firms (N = 10).
Findings
This study provides evidence of background mechanisms (attitudes, social norms and perception of feasibility) affecting the implementation of business succession planning in family SMEs. Moreover, this study provides further evidence supporting the role of social norms in strategic decision-making processes within family firms.
Research limitations/implications
Findings from this study contribute to current literature in multiple ways and have several research implications.
Practical implications
This study highlights that it is more appropriate to adopt a systemic rather than an individualistic approach in investigating/managing business succession.
Social implications
Family firms are the most widespread type of firms in the world; thus, a systematic failure in business transmission represents a prominent socioeconomical problem for policy-makers and institutions.
Originality/value
This study leads to further developments in exploring business succession from a psychological point of view. Findings also highlight the limits of how a theory applied in order to predict individual behaviour can provide insight into collective behaviour involving a family.
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This study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring…
Abstract
Purpose
This study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring business continuity from founders to successors and identifies the success factors that can facilitate seamless leadership transition outcomes.
Design/methodology/approach
This study utilised a qualitative multiple-case study approach, with the population consisting of founders from three medium-sized family businesses in Nigeria. Semi-structured interviews were the primary data collection tool used in the study. Furthermore, company documents were analysed to gain further insights into the leadership transition strategies employed in the selected businesses.
Findings
Successful transition and survival of family businesses are dependent on the founder's desire and support for transition, successor preparation, building trust and credibility in successors, and instilling a clear vision for the business.
Research limitations/implications
The study's findings will provide valuable insights to leaders of family-owned SMEs, specifically in the development of effective leadership transition action plans. It should be noted that the study is limited to three family-owned businesses in two locations in Nigeria, which may restrict the generalisability of the findings. Despite this, the study offers novel contributions to the current literature by presenting practical strategies for achieving the survival of family businesses in an emerging economy.
Originality/value
This study proposed strategies for business survival, continuity, sustainability and seamless leadership transition for small and medium-sized family-owned businesses. Importantly, the study recommends action plans for present and prospective family business leaders to deepen succession pathways.
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Mário Franco, Mayara Nagilla and Margarida Rodrigues
This study aims to analyze how the presence of women is seen in family small and medium-sized enterprises’ (SMEs) succession process from the successors' perspective.
Abstract
Purpose
This study aims to analyze how the presence of women is seen in family small and medium-sized enterprises’ (SMEs) succession process from the successors' perspective.
Design/methodology/approach
To do so, the multiple case study method (qualitative approach) was used: five Brazilian SMEs and three Portuguese SMEs, and the data-collecting techniques were the online interview and documentary analysis. Data analysis was through content analysis using NVivo software.
Findings
The empirical evidence obtained led to the conclusion that the natural succession process is predominant in the family SMEs studied here. Although succession planning is present in some firms, these plans are informal and not rigid as regards deadlines. Nor do they present stages and tasks that could be considered as a planned succession.
Practical implications
The study shows that successors do not see gender as a relevant criterion for the choice of successor. It is concluded that women's participation in family SME succession, even to a lesser extent, is still marked by gender inequality. So, this study provides directions to policymakers and researchers to focus on developmental programmes for the presence of women in family SMEs' succession process.
Originality/value
Although some successors consider that these firms' performance may be different due to gender characteristics, others emphasize that management is the same. Therefore, this study provides the futuristic direction to policymakers, researchers and educators for focusing on the enhancement of women entrepreneurs which plays a crucial role in the family SMEs' succession process. Therefore, a conceptual framework is proposed that explains the articulation of different categories to understand the gender perspective in family firms' succession.
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Peng Ren, Isabel C. Botero and James O. Fiet
Although succession planning can be important for the continuity of family firms, not all family business have the opportunity to engage in this planning. Sometimes, these…
Abstract
Purpose
Although succession planning can be important for the continuity of family firms, not all family business have the opportunity to engage in this planning. Sometimes, these organizations face crisis events that may trigger an intra-family succession. However, what happens when there is an unplanned succession? Are family businesses doomed to fail? This project aims to explore unplanned successions that are triggered by crisis and the impact that this can have on post-succession financial performance. The authors also examine the moderating role of successor characteristics (i.e. education and previous work experience) on this relationship.
Design/methodology/approach
The ideas were tested using data from 151 publicly listed family firms in China.
Findings
The findings indicate that having a crisis driven intra-family succession does not always result in lower post-succession performance. It is only successions that are triggered by market crises that negatively impact financial performance after the unplanned succession. In these instances, the education and previous experience of the successor moderate the negative relationship between market crisis succession and financial performance such that having more experience and a college education diminishes these negative effects on performance.
Practical implications
The results point to the importance of the preparation of the next generation in helping family firms navigate unplanned successions. The findings indicate that education and previous work experience of the successor can help a family firm manage a crisis.
Originality/value
This study continues to build the understanding about unplanned successions and the important role that successor preparation can have for the success of the family firm.
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Anna Motylska-Kuzma, Izabela Szymanska and Krzysztof Safin
This 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.
Abstract
Purpose
This 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/approach
The 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.
Findings
The 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/value
While 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.
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