Family protocol: how it shapes succession in family firms

2018 ◽  
Vol 41 (3) ◽  
pp. 35-44
Author(s):  
Cláudia Matias ◽  
Mário Franco
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Firms ◽  
Planning Process ◽  
Content Type ◽  
Documentary Analysis ◽  
The Family ◽  
Succession Process ◽  
Practical Implications

Purpose This study aims to understand the role that family protocol can have in the succession planning process of family businesses. Design/methodology/approach For this purpose, the authors decided on a qualitative approach and performed an exploratory case study in Portugal: one firm with a family protocol. As data collection techniques, interviewing, direct observation and documentary analysis were used. Findings Based on the empirical evidence, it is concluded that a family protocol can help succession planning and favour the continuity and survival of the family business. Practical implications This study shows the relevance of a family protocol for the succession process that seems to be at the basis of family firms’ continuity, survival and minimising their failure. Originality/value Although family firms are many in number and central in the dynamics of the world economy, the family protocol has not been approached as a determinant of a successful succession process. This holds particularly for the realm of family firms.

The role of the family council and protocol in planning the succession process in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cláudia Matias ◽  
Mário Franco
Keyword(s):  
Succession Planning ◽  
Family Firms ◽  
Planning Process ◽  
Family Firm ◽  
Content Type ◽  
Documentary Analysis ◽  
The Family ◽  
Governance Practices ◽  
Working Groups ◽  
New Generation

PurposeThe 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/approachTo 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.FindingsBased 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 implicationsThis 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/valueThe 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.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Passing the baton

2016 ◽  
Vol 24 (3) ◽  
pp. 35-37 ◽  
Author(s):  
Pauline Drury
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Firms ◽  
Longitudinal Research ◽  
Panel Discussion ◽  
Psychological Impact ◽  
Food Group ◽  
Content Type ◽  
Factors Affecting ◽  
The Family

Purpose The purpose of this paper is to consider the factors affecting the success of succession planning in family businesses. Design/methodology/approach The study reports on a panel discussion in which the former chairman of the William Jackson Food Group describes the processes put in place to manage succession at this family firm and his own experience of handing over to his successor. Findings Once upon a time, saying that you were going into the family business marked the end of any career discussion. Now it’s just the beginning – interest in family firms has never been greater. Succession planning is a subject guaranteed to generate questions – everyone wants to know how to get it right. Fortunately, it’s an area where some are happy to share their experience. Research limitations/implications The paper highlights the need for more longitudinal research on family firms. Practical implications This paper provides a practical guide to structures and processes that can facilitate succession planning in family firms. Social implications It draws attention to the emotional and psychological impact of succession on the retiring individual and the need to create life structures to replace former business involvement. Originality/value This paper aims to present a frank discussion of the approach to succession planning taken by one family business and the broader research questions that it raises.

Secrets of succession: how one family business reached the ninth generation

2019 ◽  
Vol 40 (5) ◽  
pp. 12-20 ◽  
Author(s):  
Chamsa Fendri ◽  
Pascal Nguyen
Keyword(s):  
Family Firms ◽  
Single Case ◽  
Content Type ◽  
Theoretical Concepts ◽  
The Social ◽  
The Family ◽  
Consistent Picture ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this paper is to provide insight into the specific structures and routines of family firms and to highlight their strengths and weaknesses using a case study. Design/methodology/approach The case describes a French SME in the construction sector that is undergoing succession from the eighth to the ninth generation. Both generations have offered their viewpoints. The succession context allows us to better distinguish what makes a family firm uniquely resilient and what may easily turn into a weakness. Findings The case indicates that the trust that family owners have cultivated with employees allows the firm to operate less formally and with less rigid procedures. It also encourages employees to take initiatives and contributes to their greater engagement. On the other hand, it may expose the firm to more structured and well-organized competitors. Research limitations/implications The limitations are those relative to the use of a single case. Practical implications Succession is a delicate process that needs to be well prepared and executed without any haste. It involves retaining the firm’s strengths, such as the social capital that the family has patiently amassed. But it also represents an opportunity to review the firm’s practices and to introduce a good dose of innovation. Originality/value The case provides a vivid illustration of what makes family firms so distinctive. Theoretical concepts and empirical findings from the literature are put together in a single consistent picture.

The family CEO’s effect on succession planning: founder status, difficulties with letting go and gender differences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ine Umans ◽  
Nadine Lybaert ◽  
Tensie Steijvers ◽  
Wim Voordeckers
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Firms ◽  
Chief Executive ◽  
Relational Theory ◽  
Content Type ◽  
The Family ◽  
Letting Go ◽  
And Gender ◽  
Gender Influences

Purpose The purpose of this paper is to investigate several antecedents of succession planning in family firms: founder status, the family chief executive officer (CEO)’s inability to let go and the family CEO’s gender. Design/methodology/approach This study conducts moderated mediation analysis on a sample of 259 family firms. Findings The results show that family firms led by founders show lower succession planning levels than family firms led by descendant family CEOs. This effect is mediated by the family CEO’s inability to let go. Furthermore, the influence of the emotion of being unable to let go on succession planning is dependent on the family CEO’s gender. This influence is smaller when the family CEO is female than when the family CEO is male. Originality/value The study introduces the family CEO’s inability to let go as a mediator in the founder-succession planning relationship. The results add empirical evidence to the debate about gender influences in family firms. By showing that emotions have a different outcome concerning succession planning depending on the family CEO’s gender, this study enriches gender research. The study also contributes to the family business field by introducing relational theory as a valuable theoretical framework to include gender in succession research.

Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model

2001 ◽  
Vol 25 (3) ◽  
pp. 17-36 ◽  
Author(s):  
Pramodita Sharma ◽  
James J. Chrisman ◽  
Amy L. Pablo ◽  
Jess H. Chua
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Family Firms ◽  
Test Model ◽  
Leadership Succession ◽  
Economic Theories ◽  
The Core ◽  
The Family ◽  
Succession Process ◽  
Practical Implications

Leadership succession continues to form the core of the family business literature. Numerous studies have suggested factors that influence family members' initial satisfaction with the succession process, but this body of work is highly fragmented and lacks a unifying framework. In this paper, we draw on stakeholder theory and other organizational, behavioral, and economic theories to develop a conceptual model that integrates the findings from the literature. The research and practical implications of this integrative, ready-to-test, model are discussed.

An heir for a business at Kurniawan security: a mere baton passing?

2015 ◽  
Vol 5 (5) ◽  
pp. 1-9
Author(s):  
Yeoh Khar Kheng ◽  
Sethela June ◽  
Shaik Dawood Raja Mohamed
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Subject Area ◽  
Content Type ◽  
Graduate Degrees ◽  
Security Services ◽  
The Family ◽  
The Common ◽  
Common Problems

Subject area Family business Study level/applicability This case study is relevant for undergraduate and post-graduate degrees, specifically in the field of entrepreneurship. This case can be applied in the family business and entrepreneurship module. Case overview This case highlights the issue of succession planning in a family business. It describes the problem faced by the founder of a security service company, Kurniawan Security Services Sdn Bhd., in handing over his business to his sons. The case depicts the occurrence of conflicts as one of the common problems in running a family business which, in the end, may affect the perpetuity of the business concerns. Expected learning outcomes Upon completion of the case analysis, students should be able to explain the concept of entrepreneurship in the context of a family business, discuss the issue of succession planning commonly associated with running a family business, analyse critically the nature of conflicts that may occur in a family business and suggest how the problem(s) can be attempted to be solved from within the business management perspectives. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Risk aversion in the family business: the dark side of caution

2014 ◽  
Vol 35 (5) ◽  
pp. 38-42 ◽  
Author(s):  
Martin R.W. Hiebl
Keyword(s):  
Risk Aversion ◽  
Family Business ◽  
Risk Taking ◽  
Family Firms ◽  
Family Businesses ◽  
Business Leaders ◽  
Dark Side ◽  
Content Type ◽  
The Family ◽  
Practical Implications

Purpose – This paper aims to shed light on the potential downsides of risk aversion in family firms. Moreover, it seeks to provide measures on how to balance risk taking and risk aversion in family businesses. Design/methodology/approach – The article first presents four “dark sides” of risk aversion in family businesses and then describes three groups of measures to balance risk aversion and risk taking. Both the dark sides as well as the measures to balance risk aversion and risk taking are derived from recent scientific research. Findings – Family businesses may decrease risk aversion and foster risk taking and innovativeness by creating transparency on their risk profiles and including outside knowledge in the form of non-family managers, directors or shareholders. Moreover, properly educating and integrating younger family generations might also alleviate an overly high focus on short-term risk aversion. Practical implications – Family business leaders might find the approach and findings presented in this paper helpful for securing the longer-term survivability of their firms and for improving innovativeness. Originality/value – This article is among the first to deal with the dark sides of risk aversion in family businesses, which might endanger their longer-term survivability.

The succession dilemma in family firms: case study of a French company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olivier Meier ◽  
Anne-Sophie Thelisson
Keyword(s):  
Family Business ◽  
Family Firms ◽  
External Financing ◽  
Employment Policy ◽  
Content Type ◽  
The Family ◽  
French Family ◽  
Policy Risk ◽  
Debt Policy

Purpose The purpose of this paper is to highlight the major difficulties and challenges encountered during the crucial process of family succession. In this study, the authors list and analyze issues encountered by managers or by the CEO of a family business. Design/methodology/approach Using a single longitudinal real-time case study conducted over a period of 10 years in a French family business, this study identifies the challenges encountered during family succession. The authors were allowed to follow, over a long period, the planning of the CEO’s succession. Findings The authors identified six critical points in the succession process: planning succession development; favoring creation of financial value for the shareholders; investment policy, risk taking and time horizon of investments (growth); family employment policy (family private benefit); opening of capital and debt policy (external financing); and financing of capital reduction policy (external financing). Originality/value The paper highlights the difficulties, issues and questions encountered by an SME manager or by the CEO of a family business. The analysis gives insights into the deep nature of the family structure, by involving the notions of culture and organizations serving the performance of family businesses.

Emotional intelligence in family firms

2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Business Owners ◽  
Interpersonal Dynamics ◽  
Content Type ◽  
The Family

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individual's willingness to use their EI capabilities, previous history between people, and the goals individuals have within each subsystem in a family firm. The paper also found that interpersonal dynamics, in turn, influence how family members work together. Research limitations/implications – Because this study uses an in-depth case study, the intention of the paper is to provide an initial picture of how EI can play a role in the interpersonal interactions between family business owners. The authors hope that this study can be used as a building block to enhance the understanding of the role of EI in family firms. Practical implications – EI represents an individual's capability to perceive, understand, manage, and regulate self and other's emotions. For family firms, this means that family business owners can use this capability to determine how to enact their roles in the family firm and how to interact with other to ensure harmony in their relationships. Originality/value – This paper builds on previous work on emotions in family firms to explore the role of EI in family firms, and provides an empirical exploration of the role of management of emotions in family firms.

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