Rough Family Justice: Equity in Family Business Succession Planning

1990 ◽  
Vol 3 (1) ◽  
pp. 3-22 ◽  
Author(s):  
Glenn R. Ayres
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Members ◽  
Best Interests ◽  
The Family ◽  
Business Succession ◽  
Family Business Succession

For the family business facing succession issues, the approach of rough family justice may serve as an effective guide for preserving relationships among family members by promoting the best interests of the business.

scholarly journals Legal regulation of the family members’ entrepreneurial activity and inheritance relations: law enforcement problems

2021 ◽  
Vol 108 ◽  
pp. 01011
Author(s):  
Vladislav Vasilyevich Kudryashov ◽  
Valentina Sergeevna Lepeshkina ◽  
Irina Vladimirovna Sazonova ◽  
Aleksandr Anatolevich Potkin ◽  
Viktor Anatolevich Altunin
Keyword(s):  
Law Enforcement ◽  
Family Business ◽  
Family Members ◽  
Legal Regulation ◽  
Entrepreneurial Activity ◽  
Joint Stock Company ◽  
Stock Company ◽  
The Family ◽  
Business Succession ◽  
Family Business Succession

The problem of transition in the line of business assets and obligations succession with regard to norms of civil, family and business law represents an important legal problem as for the matter of family business succession. Russian legislation does not determine the family business succession as a single entity, there exists no special regulation as well as the term “entrepreneurial succession”. The doctrine gives a reasonable conclusion that “practices of the recent past reveal substantial problems of marital regimes legal regulation under a digital transformation of the economy”. Inheriting different properties that can be collectively referred to sphere of entrepreneurial activity causes many problems of similar properties transition in the line of succession in the field of law enforcement. Determining particularities of legal regulation of inheritance relations complicated with business activities in order to ensure efficient regulation of succession to business assets and debts and as well to ensure law enforcement stability. The methodological base for the present scientific research is represented by the system of general scientific and specific scientific methods and research techniques, including a historical method, a logical method, a method of system analysis and research, a comparative legal method, a statistical method, a functional-structural method, methods of analysis and synthesis, a method of specification, an empirical and theoretical method, i.e. analogy, deduction. The authors suppose that in conditions of the world financial crisis complicated with consequences of the coronavirus pandemic small businesses are the most vulnerable, including family businesses. The authors believe that a modern lawyer must have systemic knowledge for efficient application of civil law, inheritance law, family law, entrepreneurial law on the basis of the convergence principle in law. The use of a rather broad methodological base allows determining essential properties of legal regulation of the family members’ entrepreneurial activity and inheritance relations from the point of view of law enforcement problems resolution. As for particularities of inheritance regulations application, a joint-stock company is supposed to have certain mechanisms of the protection of its interests in terms of its shares inheritance. For example, it is possible to envisage the right of a private joint-stock company to discourage inclusion within its shareholders a new participant in line with a similar power of the limited liability companies.

scholarly journals The Transition of Family Business Leadership:

2018 ◽  
Vol 2 (3) ◽  
pp. 101-104
Author(s):  
Dahliana Kamener ◽  
Norasekin Ab. Rashid ◽  
Daniati Puttri
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
First Generation ◽  
Second Generation ◽  
Family Businesses ◽  
Business Leadership ◽  
The Family ◽  
Family Leadership ◽  
Business Succession ◽  
Family Business Succession

The issue of succession is very important because the successful succession leads to the sustainability of a family businesses (Sharma & Dave, 2013). Generally, the family businesses are difficult to flourish and even many have bankrupt. Some family businesses are bound on the first generation  and some have collapsed in the second generation.  Literature shows that just 30 percent of family businesses can be passed along to the second generation, and 70 percent fail after first generation step down because there are no preparation for succession and inability  of the next generation to control and run the company (Aronoff, (2004).  The study purposed to examine six hypotheses and the result showed the succession planning, non-family leadership, and decision making authority unsignificantly affect on the succession of the family business. Nevertheless, founder's influence, successor and strategic planning variable affect significantly to the success of family business succession at Padang city, West Sumatera.  

scholarly journals BISNIS KELUARGA TANPA “PUTERA MAHKOTA”

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Andreas Heryjanto
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Owners ◽  
Family Conflicts ◽  
Succession Plan ◽  
The Family ◽  
Family Harmony ◽  
Business Succession ◽  
Fatal Consequence ◽  
Family Business Succession

<p>Business viability is a main goal of family business. However, leaders are usually reluctant to let<br />off their power, even tend to be in charge beyond the age of retirement. The most fatal consequence of<br />reluctancy to hand over the leadership to his successor is the occurrence of "Prince Charles Syndrome".<br />Viability of family business requires a mature succession plan, maintaining family harmony, the<br />responsibility and unity of ownership, and maintaining superior resources. Succession plan becomes a<br />crucial issue in this family business. Succession planning should be a priority, by clarifying who the real<br />"Crowned Prince" appointed to continue the family business. In order for business viability to running<br />well, the second generation as a business successor must be well prepared, i.e. the process of the tacit<br />knowledge transfer, the full involvement of the next generation, and the planned regeneration. It is<br />needed of the willingness and magnanimity of current business owners and leaders to gradually let off<br />business de-facto and de-jure to the "Crowned Prince". With well-prepared succession planning, it will<br />avoid potential prolonged family conflicts.<br />Keywords: Business viability, succession plan, family conflict</p>

scholarly journals Factors Affecting Family Business Succession in the Food Hawking Business in Malaysia

2020 ◽  
Author(s):  
Jonathan Cho Kin Ng
Keyword(s):  
Family Business ◽  
Family Members ◽  
Theoretical Aspect ◽  
Survey Study ◽  
Kuala Lumpur ◽  
Factors Affecting ◽  
The Difference ◽  
Business Succession ◽  
Family Business Succession ◽  
Potential Moderator

Abstract Food hawking businesses around the world largely contribute to the economy of countries and provides much needed jobs that feed employment, even though earnings are low. The food hawking business in Malaysia is under threat of extinction due to the reluctance of the next generation in taking over the food hawking businesses from the elderships. As research in the area of family business succession is scarce, this study serves to add to the theoretical aspect of the area. The purpose of this study was to analyse the effects of vending environment, operating hours, successor willingness, relationship among family members and preparation level of heir on the intention of family succession in the food hawking business in Malaysia. Leader’s approval was also studied as a potential moderator. The methodology used was a questionnaire survey study design with a sample size of 208, respondents were obtained via convenience sampling from Kuala Lumpur and Penang as hawkers are abundant in these two locations. Findings show that vending environment, successor willingness, relationship among family members and preparation level of heir have a significant effect on the intention of family succession in the food hawking business in Malaysia. Leader’s approval was found to be insignificant as a moderator. Operating hours was not significant, possibly due to the difference in importance placed by Malaysian hawkers in succession.

Perceived Parental Care and Next-Generation Family Members’ Succession Intentions: The Sequential-Mediating Role of General Self-Efficacy and Perceived Person-Job Fit

2021 ◽  
pp. 1-39
Author(s):  
Fei Zhu ◽  
Haibo Zhou
Keyword(s):  
Family Business ◽  
Self Efficacy ◽  
Parental Behavior ◽  
Family Members ◽  
Next Generation ◽  
Job Fit ◽  
Generation Family ◽  
Business Succession ◽  
General Self Efficacy ◽  
Family Business Succession

ABSTRACT Whereas the existing literature on the relationship between parental behavior and family business succession mainly focuses on parental behavior in the business domain, we highlight the importance of parental behavior in the family domain. Integrating attachment theory, the family business succession literature, and person-job fit literature, our study proposes a theoretical framework hypothesizing that general self-efficacy and perceived person-job fit mediate the association between perceived parental care (an underrepresented family-domain-specific parental behavior) and next-generation family members’ succession intentions. This framework is tested by data from two surveys and further verified by qualitative interviews of next-generation family members. Multivariate analysis results suggest that next-generation family members’ general self-efficacy and perceived person-job fit played a sequential-mediating role in the relationship between perceived parental care and next-generation family members’ succession intentions. Our interviews not only confirm these results but also reveal new insights, particularly into the specific Chinese context in the study of family business succession.

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.

Succession in the Family Business: Challenges for Successors from an Entrepreneurial Perspective

2014 ◽  
Vol 15 (4) ◽  
pp. 279-284 ◽  
Author(s):  
Daniela Weismeier-Sammer ◽  
Isabella R. Hatak
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Teaching Case ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Business Challenges ◽  
Family Business Succession

Kronmann Wholesale and Retail is an outstanding family business with more than 300 years of history. This teaching case tells the story of two cousins who follow their fathers into a business full of tradition. The case gives students the opportunity to gain insights into the complex succession process of family businesses, as well as the challenges with which successors are confronted in the course of family business succession.

Motives and Outcomes in Family Business Succession Planning

2013 ◽  
Vol 39 (2) ◽  
pp. 299-312 ◽  
Author(s):  
Michael Gilding ◽  
Sheree Gregory ◽  
Barbara Cosson
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Succession ◽  
Family Business Succession

FAMILY BUSINESS SUCCESSION: EVOLUTIONARY ECONOMICS APPROACH

2008 ◽  
Vol 16 (03) ◽  
pp. 279-298 ◽  
Author(s):  
JUHA KANSIKAS ◽  
TUOMAS KUHMONEN
Keyword(s):  
Family Business ◽  
Evolutionary Economics ◽  
Family Relations ◽  
Family Firm ◽  
Evolutionary Forces ◽  
2Nd Generation ◽  
The Family ◽  
Business Succession ◽  
Family Business Succession ◽  
Selection Of

This study analyses family business continuity from founder generation to the 2nd generation in terms of succession in the context of evolutionary economics. Two literature bases; family business succession and evolutionary thinking in organisational and economic change, are reviewed and combined to provide insights to understand the nature of family business succession. Operation of the key evolutionary forces — variation, selection, retention and struggle — in family business succession are illustrated. Regarding variation, there is a concern for understanding the importance of having enough diversity within the family firm, since this diversity of routines and competences comprises the pool of variation from which to select when the environment changes. With regards to selection, there is a concern for understanding the risk of selection bias easily rooted in the family firm culture: are some variations favoured in the selection of operating, investment and search routines because of family relations, emotions and values, including decisions on who will succeed and who will own the firm in the future. Elaboration and investigation of these concepts may help to identify special characteristics of the "family firm species" that are either beneficial or risky for the survival in the evolutionary struggle.

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