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Book part
Publication date: 18 December 2007

Ruth Rossier and Brigitta Wyss

In Switzerland farm succession is predominantly patrilinear and controlled by a patriarchal system of succession. A postal survey on farm succession in Switzerland in 2004…

Abstract

In Switzerland farm succession is predominantly patrilinear and controlled by a patriarchal system of succession. A postal survey on farm succession in Switzerland in 2004 elucidated the gender patterns of conditions of succession: the current share of female farm operators stands at 6%. There are no trends towards change. The number of potential female successors ready to take over the farm in the next generation cited by the present operator is again 6% (Rossier & Wyss, 2006). In Switzerland by law women and men are considered equal in all ambits of life. The Act on Gender Equality came into force in 1996. Since then all federal laws that treated women differently from men have been amended.

Details

Gender Regimes, Citizen Participation and Rural Restructuring
Type: Book
ISBN: 978-0-7623-1420-1

Article
Publication date: 6 October 2023

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.

Details

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

Keywords

Article
Publication date: 18 May 2023

Okey Nwuke and Ogechi Adeola

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.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 6 June 2023

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.

Details

Journal of Family Business Management, vol. 13 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 25 August 2022

Fei Fei Wang, Jiong Wu and Xiaoxian Gong

Aiming at the key issue of interpersonal interaction process between successors and top management teams in the context of family business trans-generational entrepreneurship…

Abstract

Purpose

Aiming at the key issue of interpersonal interaction process between successors and top management teams in the context of family business trans-generational entrepreneurship, this paper aims to explore the motivation, action and results of interpersonal conflict between these two subjects mentioned above.

Design/methodology/approach

This paper uses grounded theoretical research methods based on the research objects of three family businesses with both inheritance and transformation needs.

Findings

Motivation difference, mediation mode and relationship utilization, that is, the successor and top management team take the goal-orientation, interest orientation and rational tendency as the starting point for relationship coordination. Then it mediates the interpersonal conflicts through compromise, collaboration and compliance, and ultimately provide successors with resources, opportunities, capabilities and motivation advantages to promote trans-generational entrepreneurship. Second, the path of relationship coordination comes from the background of social embedding, that is, the motivation difference comes from the embedding of motivation seeking, the mediation mode comes from the embedding of mediation elements and the relationship utilization comes from the embedding of relationship optimization. The research conclusions not only provide a theoretical framework for family businesses to solve the problems of interpersonal conflicts faced by family businesses but also have practical guiding significance for the trans-generational entrepreneurship.

Originality/value

There are two theoretical contributions in this study. First, the research starting point of social embeddedness theory from the perspective of interpersonal relationships at the microlevel is revised. Since Granovetter (Granovetter, 1985) put forward the theory of social embeddedness, its research scope has been gradually expanded, but the mainstream research in the past focused on analyzing the social network embeddedness of enterprises to obtain social capital from the macro- and meso-level (Nahapiet and Ghoshal, 1998). In fact, this may deviate from the essential interpretation of Granovetter’s theory of social embeddedness, while this study returns to the study of interpersonal relationships. Second, a theoretical model of relationship coordination for successors and top management team is put forward in general. On the basis of the motivation, action and result of interpersonal interaction between the successor and top management team, the interpersonal coordination action path and embedded logic during trans-generational entrepreneurship of family businesses are revealed, which enriched the research scope of social embedded theory in family business.

Details

Nankai Business Review International, vol. 14 no. 1
Type: Research Article
ISSN: 2040-8749

Keywords

Open Access
Article
Publication date: 15 August 2022

Zeshan Ahmad, Shahbaz Sharif, Muhammad Ahmad Alrashid and Muhammad Nadeem

The purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB…

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Abstract

Purpose

The purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB) contributes to a successful succession transition across generations.

Design/methodology/approach

The conceptual model method was employed in this investigation, which describes an entity and identifies issues that should be considered in a study (MacInnis, 2011). It involves a form of theorizing that seeks to create a nomological network around the focal concept, to examine and detail the causal linkages and mechanisms at play (Delbridge and Fiss, 2013).

Findings

Drawing on the trait activation theory (TAT), this study conceptualizes that the congruence of the successor's PTs with those of the predecessor, as well as the values, transitions and nature of the assigned task, activates the successor's PTs and motivates him to work diligently for a successful succession transition while preserving the business's core values established by the founder.

Research limitations/implications

This study is an eye-opener for strategists and SFB predecessors to ponder the successor's PTs disparities across generations. Additionally, it urges them to consider the congruence of SFB's values and nature of operations with the successor's PTs for successful succession transition. Thus, such awareness may contribute to stabilizing the SFB's survival rate.

Originality/value

This study contributed to the existing literature by answering how predecessor’s and successor's PTs congruence and SFB's values and nature of operations congruence with their PTs may contribute to successful succession transition across generations. This study contributed to the TAT by thematically explaining the organizational cues to bridge a relationship between entrepreneurial personality traits (EPT) and succession success of SFBs.

Details

Revista de Gestão, vol. 30 no. 4
Type: Research Article
ISSN: 1809-2276

Keywords

Article
Publication date: 19 April 2013

Margaret M.C. Humphreys

The research asked: How do daughters take the lead in their family businesses? What are the relevant issues that characterize the succession process for daughters, what are the…

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Abstract

Purpose

The research asked: How do daughters take the lead in their family businesses? What are the relevant issues that characterize the succession process for daughters, what are the attributes of daughter successors, and what, if any, features distinguish their leadership style?

Design/methodology/approach

Qualitative research comprised reflective interviews with 14 daughter successors. Thematic data analysis was used to analyze data, build models and link to previous research.

Findings

The shifting landscape of women's roles in family businesses is evidenced through the experiences of daughters who have taken over the top leadership positions in their family firms. Skill and commitment override gender in successor selection. The women were intrinsically motivated to take over their family businesses and owned significant shares in their firms. The findings confirm the centrality of the successor‐incumbent relationship and reveal mentoring, frequently by the incumbent, as the principal vehicle for the transfer of business leadership. Emotional competence emerged as a key successor quality.

Research limitations/implications

This research is based on a single perspective, that of the successor. The accounts may include elements of performance, that is, selection of content based on the audience and the participant's desired results.

Originality/value

The paper provides an alternate view to female invisibility in the family business, and the practice of primogeniture. This is new research on succession and women's roles in family business.

Details

Journal of Family Business Management, vol. 3 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 17 June 2008

Soo‐Hoon Lee, Phillip H. Phan and Toru Yoshikawa

This study examined the human and social capital factors associated with higher post‐succession firm performance in family enterprises in Singapore. We also investigated the…

Abstract

This study examined the human and social capital factors associated with higher post‐succession firm performance in family enterprises in Singapore. We also investigated the moderating influence of the board of directors in terms of its service role as stewards of the enterprise. We found that a successor’s industry experience and diversity of network ties were positively associated with firm performance and boards that focused their role as advisors to the successor enhanced post‐succession firm performance.

Details

Multinational Business Review, vol. 16 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 25 October 2019

Rida Elias and Bassam Farah

The purpose of this paper is to provide a model that can explain how organizations may retain their executives’ tacit knowledge in the organization especially during the…

Abstract

Purpose

The purpose of this paper is to provide a model that can explain how organizations may retain their executives’ tacit knowledge in the organization especially during the succession period. The proposed model takes into consideration three critical contexts that may assist in improving the knowledge flow during the transition period, namely, motivation context, transition context and ability context.

Design/methodology/approach

This paper presents a conceptual framework that emphasizes the importance of the will and skill of two parties involved in succession, i.e. the predecessor and successor, as well as the context of the succession. To this end, the paper advances a set of propositions that explain how these different contexts affect the quantity and quality of the knowledge acquired by the successor at the end of the succession period.

Findings

This paper advances a theoretical model that describes the antecedents and moderator of job-specific knowledge acquired during executive succession.

Research limitations/implications

This paper presents a theoretical model that explains knowledge flow during the transitory period of succession. It emphasizes the importance of the motivation and ability of the partners involved while taking into consideration the context of succession.

Practical implications

This paper contributes considerably and in a practical manner to managers in general and to human resource managers in particular. It draws the attention of concerned managers to check the motivation of both successor and predecessor in experiencing the transition, explain to the successors the job description of the position to direct their attention to learn specific knowledge and equip both parties involved in the succession with the needed skills.

Originality/value

This paper advances a new concept termed as accelerated engaged tacit knowledge acquisition. This concept complements other perspectives of knowledge flow and learning and takes into consideration the specific context of executive succession.

Article
Publication date: 21 August 2019

Cagri Bulut, Serpil Kahraman, Emir Ozeren and Sobia Nasir

The purpose of this paper is to elaborate on the preferences of parent founders within family businesses in selecting a suitable successor with the increase in life expectancy.

Abstract

Purpose

The purpose of this paper is to elaborate on the preferences of parent founders within family businesses in selecting a suitable successor with the increase in life expectancy.

Design/methodology/approach

The study presents alternative decision-making preference models of a suitable succession for parent founders based on the models of microeconomic theory in the context of family businesses.

Findings

The theories and models of economics in the current study illustrate that the increase in the life expectancy of the parent founders with their decisions toward the preference of a suitable successor under the age constraint may restrict the sustainability of their family businesses. As a result, the opportunity cost theory appears as to be at the ahead of the other theories in microeconomics in order to support the decision making of parent founders on selecting the suitable successor for the future of the family business.

Research limitations/implications

The paper illustrates the models on the preferences of the parent founder for the future of the family businesses with their perception toward the increase in overall life expectancy. The current study is limited to the perspectives of founder entrepreneurs toward an effective succession decision. Future research may consider the perspectives of in-family as well as non-family successors.

Originality/value

In the light of alternative preference decision-making models for parent founders for choosing a suitable successor under the age constraint, this study will make a noteworthy contribution to the sustainable growth of their family businesses. The approach of this study through the microeconomics not only methodologically contributes to the body of knowledge in aging and employment in general, but also to the intergenerational relationships of parent founders, especially their succession-related plans at their early stages of career.

Details

Journal of Organizational Change Management, vol. 34 no. 7
Type: Research Article
ISSN: 0953-4814

Keywords

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