Succession Experiences in Philippine Family Businesses

2000 ◽  
Vol 13 (1) ◽  
pp. 15-35 ◽  
Author(s):  
Andrea L. Santiago
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Asian Country ◽  
Family Values ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Leadership Succession ◽  
The Family ◽  
Succession Process

Western research suggests that family business owners must prepare for leadership succession in a systematic manner to ensure continuity. A review of the succession experiences of eight family businesses in the Southeast Asian country of the Philippines seems to indicate that the key to smooth succession for group-oriented families is not entirely dependent on succession planning. Rather, a family business's smooth succession depends on the succession process being consistent with family values. In fact, valuing the preservation of the family unit helps to avoid the ill effects that normally accompany the absence of succession planning.

scholarly journals A Study on Succession Planning, Prospective Successor Selection, Transfer of Idiosyncratic Firm Knowledge in Family Owned Businesses of Hyderabad

2021 ◽  
Vol 9 (1) ◽  
pp. 8-16
Author(s):  
Manchala Seema ◽  
Syed Sayf Ali
Keyword(s):  
Tacit Knowledge ◽  
Family Business ◽  
Succession Planning ◽  
Business Owners ◽  
Family Businesses ◽  
Indian Economy ◽  
The Family ◽  
Firm Knowledge ◽  
Survey Results ◽  
Insight Into

This study seeks to gain a better understanding of how the succession planning is undertaken in family owned businesses, most preferred qualities in the prospective successor and the transfer of tacit idiosyncratic firm knowledge from one generation to the next generation. The fact that family businesses contribution to the Indian economy is highly significant as well as the fact that most of the family businesses do not survive beyond three generations makes the study important. This study was conducted by distributing a quantitative survey containing numerous close ended questions to the family business owners, potential successors and successors. The survey asked respondents to explain how succession planning takes place in their firm, the most preferred qualities in the prospective successor and the mode of transfer of tacit idiosyncratic firm knowledge from one generation to another. The survey results provided insight into many important factors of succession planning such as the prospective successor being chosen with consensus of the all the family members, the process of succession being well communicated in the business and possessing leadership values is the most preferred quality sought in a successor. Learning by observing is the most preferred mode of transfer of tacit knowledge from one generation to another.

scholarly journals Investigating value-laden leadership styles among family business owners

2016 ◽  
Vol 47 (4) ◽  
pp. 35-46 ◽  
Author(s):  
E. Venter ◽  
S. M. Farrington
Keyword(s):  
Leadership Styles ◽  
Leadership Style ◽  
Family Business ◽  
Business Performance ◽  
Business Owners ◽  
Primary Objective ◽  
Family Businesses ◽  
Participative Leadership ◽  
Significant Relationships ◽  
The Family

Given the need for a different approach to leadership, as well as the need for further investigation on leadership among family businesses, this study investigates several value-laden leadership styles among family businesses. More specifically the primary objective is to establish the levels of Servant, Ethical, Authentic, and Participative leadership displayed by family business owners and the influence thereof on the Perceived business performance of the family business. A survey was undertaken and 266 usable questionnaires were returned from 133 family business owners and 133 from family business employees. The data analysis involved calculating descriptive statistics and undertaking t-tests. Multiple regression analysis (MRA) was done to test the hypothesised relationships. Although the MRA analysis revealed no statistically significant relationships between the leadership styles investigated and Perceived business performance, the vast majority of respondents agreed that the styles investigated were displayed by the family business owners. For both sample groups Ethical leadership returned the highest mean score, followed by Servant and Participative leadership. The importance of these value-laden leadership styles to family businesses is thus highlighted, contradicting the literature that family businesses owners are often autocratic in their leadership style. In addition, increased clarity on the effectiveness of these value-laden leadership styles within the context of family business is provided.

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.

Inertia as inhibiting competitiveness in Philippine family businesses

2015 ◽  
Vol 5 (2) ◽  
pp. 257-276 ◽  
Author(s):  
Andrea Santiago
Keyword(s):  
Life Cycle ◽  
Family Business ◽  
Family Members ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Business Failure ◽  
Content Type ◽  
Business Operations ◽  
Practical Implications

Purpose – The failure to innovate has been recognized as one of the prime causes of business failure. In addition to this, the purpose of this paper is to explore whether it is the failure to act or inertia that can also explain the inability of family businesses to move forward. Design/methodology/approach – This research documented the experiences of five family businesses in the Philippines that were unable to sustain their business operations. Only five families were identified since it was difficult to trace the business owners of businesses that failed, and once identified, not all were willing to discuss the reason for their business failure. Findings – The cases showed that business decline actually results from the failure of family members to address the challenges brought about the change in the different life cycle dimensions. In hindsight, arresting a downward trend necessitates varied strategic approaches. While some family members may felt incapable of introducing innovation in their business, the failure to act, by itself, was a guarantee of business failure. Research limitations/implications – The research was limited to five family businesses in the Philippines. It is possible that there may be many other reasons for family business failure based on the experiences of other families. Unfortunately, many business families in the Philippines are tight-lipped about failure, even if there are lessons to be learned. Practical implications – This paper brings attention to the need of family business owners to be more proactive in meeting the changing needs of their family business. Formula that worked before may not be appropriate at a different time. Originality/value – Research has shown that there are many reasons for family business failure. This paper shows the importance of transcending the feeling of inertia so that family members can be more proactive in meeting the challenges that they are bound to face as their families, their products, their businesses, and the industries they are in, move from one stage of the life cycle to another.

scholarly journals Sucessão e conflitos: proposições de pesquisa acerca das empresas familiares

2020 ◽  
Vol 19 (2) ◽  
pp. 6-27
Author(s):  
Djeimi Angela Leonhardt Neske ◽  
Leonardo Alves de Oliveira Casimiro ◽  
Ivano Ribeiro
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Relationship Conflict ◽  
Governance System ◽  
Complete Understanding ◽  
The Family ◽  
Vast Literature ◽  
Succession Process ◽  
Or Organization ◽  
The Relationship

Objective: This paper aims to identify the implications of conflict on a succession process in family business.Methodology: For the development of this literature review, we based ourselves on the behavioral view of conflict, presenting a set of propositions and a framework for investigations in the field.Originality: Even with the vast literature on conflict, there is still no complete understanding of its effects on a group or organization. In a family business, the process of succession can intensify conflicts, since it includes the simultaneous relationship between the business and the family, and there is a need for greater understanding of this phenomenon.Main results: The results suggest that in family organizations, the relationship conflict may be present and negatively impact the succession process. Thus, management models focused on the collaborative view of conflicts can positively reflect the succession planning and the performance of the new management.Theoretical contributions: As a contribution, we present a series of propositions that provide indications of the effects of conflict on the succession of family businesses, highlighting the importance of a governance system that provides balance to the process.

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.

scholarly journals The father’s role in supporting the son’s business knowledge development process in Vietnamese family businesses

2019 ◽  
Vol 11 (2) ◽  
pp. 258-276 ◽  
Author(s):  
Thanh Trung Pham ◽  
Robin Bell ◽  
David Newton
Keyword(s):  
Family Business ◽  
Development Process ◽  
Second Generation ◽  
Family Businesses ◽  
Knowledge Development ◽  
Content Type ◽  
The Family ◽  
Business Knowledge ◽  
Succession Process

Purpose Many family businesses do not survive into the second generation. A common reason put forward for this is poor succession planning for the second generation. This paper is designed with the aim to explore the role of the father in supporting the son’s business knowledge and development in Vietnamese family businesses. Design/methodology/approach This research adopted an inductive qualitative approach using multiple face-to-face semi-structured interviews with five father–son succession pairs. The interview participants were a cross section of Vietnamese family businesses, where the father–son pair was involved in the process of business knowledge transfer and the succession process was at an advanced stage. Findings The results suggest that the father plays different roles at different stages of the son’s business knowledge development process. In particular, the father acts as an example during the son’s childhood; a supporter to encourage the son to gain more business knowledge from both formal education and working experience outside the family business; a mentor and trouble-shooter after the son joins the family business as a full-time employee; and as an advisor after the son becomes the leader of the firm. Originality/value Most Vietnamese family businesses are still operating under the control of the first generation, and as a result, research into the succession process in Vietnam can help to provide valuable insights. Furthermore, existing research into the role of the predecessor in the whole process from the successor’s childhood until the end of the succession process is ambiguous and requires further research to clarify this research gap.

Non-Market-Based Transfers of Wealth and Power: A Research Framework for Family Business

1997 ◽  
Vol 10 (1) ◽  
pp. 53-67 ◽  
Author(s):  
Neil C. Churchill ◽  
Kenneth J. Hatten
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Family Experience ◽  
Family Ties ◽  
Research Framework ◽  
Family Enterprise ◽  
Biological Reality ◽  
The Family ◽  
Business Experience ◽  
Succession Process

Family businesses are basically owner-managed enterprises with the family involved within the business. When, to family ties within the business, is added the biological inevitability of an eventual transfer of power, family succession becomes an alternative to selling the business—a transfer based on non-market considerations. A framework for studying family businesses is proposed which has succession as its anchor. The succession process is where changes in management, in strategy, and in control are planned for and executed. The framework is built upon stages of the family enterprise which emanate from the biological reality of parent and offspring being separated by age and business experience, but wedded together by “blood” and a shared family experience.

When is the right time for succession? Multiple cases of family businesses in Indonesia

2020 ◽  
Vol 10 (4) ◽  
pp. 349-359
Author(s):  
Nyayu Lathifah Tirdasari ◽  
Wawan Dhewanto
Keyword(s):  
Family Business ◽  
Food Industry ◽  
Developmental Stages ◽  
Family Businesses ◽  
Comparative Case Study ◽  
Structured Interviews ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
The Right

PurposeSuccession timing plays a key role in the part of the succession process. While much notice has been given solely to the viewpoint of predecessor and successor, less known about the schedule during this most critical family business dealings. The purpose of this research is to assess the right time for predecessors to let go of their leadership and allow the successor to take charge of the family business. Notably, it considers how the process of interaction between predecessor and successor may encourage successor capability, succeed the family business and following implications for the succession process as well.Design/methodology/approachAn exploratory comparative case study design employed in order to disclose the time by time activities around the succession process. This study presented circa 11 case studies from family businesses of the food industry. Data gathered utilizing semi-structured interviews and formal secondary data from the organizations, all of whom operate in Java, Indonesia.FindingsFindings reveal five critical outcomes. First, the results show that most of the respondents had no written succession plan and did not keep up the developmental stages, but the succession process was successful. Second, the study found a reduced age of successor even though the stages increase. Third, the respondents did not know when was the predecessor is getting busy managing the business, and some successors did not attend college as well. Fourth, the succession process of RC is the fastest and TY is the longest. Last, the succession process of the second-generation family business is faster than the third-generation.Originality/valueThis paper presents further evidence of the succession process of family businesses. It moves beyond a timing explanation of succession to develop a more sequentially aware understanding of the agility within the succession process. It contributes to the limited references of the family business in the food industry in Indonesia as well.

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