Succession in Family Firms: A Mutual Role Adjustment between Entrepreneur and Next-generation Family Members

1990 ◽  
Vol 15 (1) ◽  
pp. 37-52 ◽  
Author(s):  
Wendy C. Handler
Keyword(s):  
Family Firms ◽  
Family Members ◽  
Next Generation ◽  
Generation Family

Strategic Planning in Family Business: A Powerful Developmental Tool for the Next Generation

2008 ◽  
Vol 21 (3) ◽  
pp. 239-258 ◽  
Author(s):  
Pietro Mazzola ◽  
Gaia Marchisio ◽  
Joe Astrachan
Keyword(s):  
Strategic Planning ◽  
Family Business ◽  
Family Firms ◽  
Planning Process ◽  
Developmental Process ◽  
Family Members ◽  
Work Relationships ◽  
Next Generation ◽  
Generation Family ◽  
Planning Processes

This article addresses the issue of training next-generation family members once they have joined the management team in their family firm. The qualitative analysis of strategic planning processes of 18 Italian family firms shows that involving next-generation family members in the planning process benefits their developmental process. The findings indicate that this involvement provides the next generation with crucial tacit business knowledge and skills, facilitating interpersonal work relationships between incumbents and next-generation leaders and building credibility and legitimacy for the next generation. The comparative analysis of the cases allowed us to identify the five variables that seem to combine in explaining much of the observed differences in the amount and composition of benefits experienced in the 18 firms. Our findings extend current understanding of two understudied topics in family business: the postentryphase training of the next generation and strategic management in family firms.

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.

Effects of parental entrepreneurial performance on the mode of entrepreneurial entry by the next-generation family members: evidence from an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Watiri Muigai ◽  
Edward Mungai ◽  
S. Ramakrishna Velamuri
Keyword(s):  
Small Business ◽  
Family Business ◽  
Family Members ◽  
Business Owners ◽  
Small Business Owners ◽  
Next Generation ◽  
Content Type ◽  
Entrepreneurial Entry ◽  
Generation Family ◽  
Formal Employment

PurposeThe purpose of the paper is to examine the effects of perceived parental entrepreneurial rewards, or PPERs (i.e. the offspring's perception of the degree of parental success in entrepreneurship), on the corporate venturing (CV) mode of entrepreneurial entry and the interaction effects of family business involvement (FBI) and formal employment on the association between PPER and CV by the next-generation family members.Design/methodology/approachA survey was administered to a sample of 738 small business owners in Kenya; of which, 440 small business owners were selected because they grew up in a family business context. A probit model was used to examine the main and interaction effects.FindingsPPERs significantly influenced CV. FBI improves the positive relationship whereas formal employment reduces the effects of PPER on CV.Practical implicationsFamilies in business need to improve conversations with their children to include discussions concerning the intrinsic and extrinsic rewards of running a family business, which may shape not only the entrepreneurial entry path of their offspring but also the willingness to establish businesses that may grow and lead to continuity of the family business of origin.Originality/valueThe study investigates the effect of being embedded in a business family in shaping the CV mode of entrepreneurial entry by the next-generation family members who may not, on the one hand, find independent own founding an attractive option and for whom, on the other hand, the succession mode of entry may not be an option.

scholarly journals Generational brokerage: An intersubjective perspective on managing temporal orientations in family firm succession

2020 ◽  
pp. 147612702097697
Author(s):  
Vittoria Magrelli ◽  
Emanuela Rondi ◽  
Alfredo De Massis ◽  
Josip Kotlar
Keyword(s):  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Mediation Process ◽  
Organizational Processes ◽  
Generation Family ◽  
Embedded Case Study ◽  
Intra Family

Interactions between family members of different generations often unleash powerful tensions in family firms. Intergenerational tensions can be particularly prominent during intra-family succession as a result of the different temporal orientations of senior and junior generation family members. However, scant systematic attention has thus far been paid to understanding the temporality of intergenerational tensions in family firms. Through an embedded case study, we explore the mediation process that helps family firms manage intergenerational tensions by way of temporal work. Our investigation of an advisory firm and its clients led us to identify generational brokerage as the intersubjective process through which temporal work enables generations toward the joint understanding of temporal orientations. Our theoretical insights have significant implications for developing a temporal view of succession and add novel important knowledge to research on mediation and time. Indeed, we show that generational brokerage is a dialectic construct with organizing properties able to blend disparate research streams by going beyond a unidirectional forward-flowing logic of time in examining organizational processes.

The Succession Experience of the Next Generation

1992 ◽  
Vol 5 (3) ◽  
pp. 283-307 ◽  
Author(s):  
Wendy C. Handler
Keyword(s):  
Family Members ◽  
Family Firm ◽  
Next Generation ◽  
Generation Family ◽  
The Future ◽  
Biographical Study ◽  
Specific Factors

Literature indicates that succession is critical to the future of a family firm. However, little is known about how the next generation actually experiences the process of succession. An in-depth biographical study of thirty-two next-generation family members indicates specific factors critical to succession. The findings are delineated in a framework that portrays these influences, their relationships, and the effect they have on the succession experience of next-generation family members.

The Origins and Development of Socioemotional Wealth Within Next-Generation Family Members: An Interpretive Grounded Theory Study

2019 ◽  
Vol 32 (4) ◽  
pp. 396-424 ◽  
Author(s):  
Linda Murphy ◽  
Jolien Huybrechts ◽  
Frank Lambrechts
Keyword(s):  
Grounded Theory ◽  
Family Members ◽  
Theory Approach ◽  
Next Generation ◽  
Socioemotional Wealth ◽  
Life Paths ◽  
The Family ◽  
Generation Family ◽  
Key Events ◽  
Grounded Theory Approach

Adopting an interpretive grounded theory approach, we find that key events in the early lives of next-generation family members fuel a sense of belonging and identity, which lies at the heart of their socioemotional wealth. As next-generation family members interact more with the family business, they interpret nonfinancial aspects of the firm as an answer to a larger variety of affective needs, which broadens and strengthens their interactive socioemotional wealth frame of mind. In line with our life course theory lens, we observe how key events that build up socioemotional wealth greatly influence the life paths of next-generation family members.

scholarly journals Behavioural outcomes of next-generation family members’ commitment to their firm

2013 ◽  
Vol 23 (4) ◽  
pp. 570-581 ◽  
Author(s):  
Alexandra Dawson ◽  
P. Gregory Irving ◽  
Pramodita Sharma ◽  
Francesco Chirico ◽  
Joel Marcus
Keyword(s):  
Family Members ◽  
Next Generation ◽  
Generation Family

A Study of Succession in a Family Firm

2001 ◽  
Vol 14 (3) ◽  
pp. 245-258 ◽  
Author(s):  
A.B. Ibrahim ◽  
K. Soufani ◽  
J. Lam
Keyword(s):  
Family Business ◽  
Case History ◽  
Family Firms ◽  
Family Members ◽  
New Economy ◽  
Family Firm ◽  
Next Generation ◽  
Succession Process

For many founders of family firms, the decision to retire and relinquish control of the business to their offspring is difficult. Pierre Peladeau founded Quebecor Inc., a family business and a communications leader in the new economy. The present research describes the reluctance of the founder to let go of the business to his offspring and the succession process after the death of the founder. The methodology employed is a combination of case history and study of public documents. The study underscores the need to manage conflict between family members and to plan for succession for the next generation effectively.

Impact of family succession on financial performance: empirical evidence from Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamrul Hassan Sunon ◽  
Muzhtaba Tawkeer Islam ◽  
M. Adnan Kabir
Keyword(s):  
Financial Performance ◽  
Family Firms ◽  
Second Generation ◽  
Panel Data Analysis ◽  
Family Members ◽  
Empirical Literature ◽  
Content Type ◽  
Firm Ownership ◽  
Significant Difference ◽  
Generation Family

PurposeAcademic research on the transgenerational performance differences among family firms in Bangladesh is still in its infancy. This paper delves into this issue to answer whether the financial performance of family firms run by second-generation family members is different from their predecessors and nonfamily firms.Design/methodology/approachThe study employs panel data analysis that attempts to conceptualize the performance difference, quantified in terms of profitability and return, between founder- and second-generation-run public companies in Bangladesh. Moreover, cross-sectional regressions extend the research paradigm to investigate and validate whether heir-controlled family firms perform differently than nonfamily firms or firms that are yet to experience ownership succession within a family.FindingsThe study indicates that family firms perform better when founding family members are in control compared to second-generation-run family firms. Moreover, further analysis suggests that heir-controlled family firms do not show a significant difference in performance compared to firms that never had a family succession in its managerial positions. The implications are that there could be nonfinancial family-centric motivations for family business ownership transition.Practical implicationsFamily succession of firm ownership is venerated without necessarily a validation of its financial merit. In Bangladesh, this is too often a de facto transfer of leadership within family firms. This study can act as a reference point to understand that family succession of firm ownership in Bangladesh may not necessarily be in the best financial interest of a firm.Originality/valueThe literature on family firms propounds a plethora of vacillating conclusions and opinions. This paper adds this body of empirical literature into an exercise of formal logic. Such an empirical investigation into the financial performance of Bangladeshi family firms, visualized through the lens of leadership transfer to a second-generation family member, has not been extensively studied in contemporary literature.

scholarly journals Heterogeneity of the Clinical Presentation of the MEN1 LRG_509 c.781C>T (p.Leu261Phe) Variant Within a Three-Generation Family

Genes ◽  
2021 ◽  
Vol 12 (4) ◽  
pp. 512
Author(s):  
Aleksandra Gilis-Januszewska ◽  
Anna Bogusławska ◽  
Kornelia Hasse-Lazar ◽  
Beata Jurecka-Lubieniecka ◽  
Barbara Jarząb ◽  
...  
Keyword(s):  
Neuroendocrine Tumor ◽  
Clinical Presentation ◽  
Age Of Onset ◽  
Malignant Tumors ◽  
Genetic Disorder ◽  
Family Members ◽  
Pancreatic Neuroendocrine Tumor ◽  
Index Patient ◽  
Generation Family

Multiple neuroendocrine neoplasia type 1 (MEN1) is a rare genetic disorder with an autosomal dominant inheritance, predisposing carriers to benign and malignant tumors. The phenotype of MEN1 syndrome varies between patients in terms of tumor localization, age of onset, and clinical aggressiveness, even between affected members within the same family. We describe a heterogenic phenotype of the MEN1 variant c.781C>T (LRG_509t1), which was previously reported only once in a family with isolated hyperparathyroidism. A heterozygous missense variant in exon 4 of the gene was identified in the sequence of the MEN1 gene, i.e., c.781C>T, leading to the amino acid change p.Leu261Phe in a three-generation family. In the screened family, 5/6 affected members had already developed hyperparathyroidism. In the index patient and two other family members, an aggressive course of pancreatic neuroendocrine tumor (insulinoma and non-functioning neuroendocrine tumors) with dissemination was diagnosed. In the index patient, late diagnosis and slow progression of the disseminated neuroendocrine tumor have been observed (24 years of follow-up). The very rare variant of MEN1, LRG_509t1 c.781C>T /p.Leu261Phe (LRG_509p1), diagnosed within a three-generation family has a heterogenic clinical presentation. Further follow-up of the family members should be carried out to confirm the spectrum and exact time of clinical presentation.

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