scholarly journals Founder’s Apprehension in Small Family Business Succession in Thailand: Interpretative View of the Situational Distance

SAGE Open ◽  
2019 ◽  
Vol 9 (4) ◽  
pp. 215824401988513
Author(s):  
Tariq H. Malik
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Discretionary Power ◽  
Small Family ◽  
Cognitive Scripts ◽  
Succession Process ◽  
Functional Context ◽  
Business Succession ◽  
Depth Interviews ◽  
Family Business Succession

Small family businesses (SFBs) encounter disruption during the intergenerational succession unless understood and managed effectively. Even before the succession process begins, the founder’s apprehension about the succession rises to a critical level, and yet a little research has dealt with this issue. We address the issue of the founder’s apprehension through this qualitative study by tracing the causes, contexts, and contours through the accounts of the founder in Thailand. We used 18 in-depth interviews with founders whose business types, their intergenerational succession planning, and regional contexts had similarities. A bricolage between family business as a rational device and a social device reveals whether and how the founder’s mental structures and situated-attention reflected on the focal concept of “apprehension.” We note several findings. First, a combination of cognitive scripts and situated attention altered the founder’s identity vis-à-vis the heir. Following from the functional, relational, locational, temporal, and structural narratives, the founder’s interpreted distance from that of the heir suggests that the discretionary power of the founder varies. Second, this variation translates into apprehension in an order. Third, based on the order of the distance between the founder and heir, the functional and structural narrative take the first and second positions. Third, theoretically, we link the functional context to cognitive and structural context to normative perspectives.

scholarly journals THE CHALLENGES OF FAMILY BUSINESS SUCCESSION PROCESS: A CASE STUDY OF TWO MAJOR BATIK PERANAKAN ENTREPRENEURS IN PEKALONGAN AND SOLO

2021 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Lili Kristanti ◽  
Maureen Nuradhi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Research Method ◽  
Future Generations ◽  
The Third ◽  
Succession Process ◽  
The Difference ◽  
Business Succession ◽  
Family Business Succession

<p>Family business has many challenges to sustain for generations. Two legendary Peranakan batik entrepreneurial families halted their businesses at the third generation and this research looks for the causes of this failure. Through qualitative research method, the conclusion drawn is that there is no mature succession planning from the predecessor to the successor. Meanwhile, the difference in motivation and commitment of the next generation of these two family businesses do not seem to cause a difference in the final journey of Batik Oey Soe Tjoen and Batik Tiga Negeri. Factors beyond succession planning and commitment of future generations can be subject to further research studies.</p><p> </p>

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

IRS Estate Freeze Rules: Implications for Family Business Succession Planning

1994 ◽  
Vol 7 (1) ◽  
pp. 61-71 ◽  
Author(s):  
Donald F. Kuratko ◽  
Helga B. Foss ◽  
Lucinda L. VanAlst
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Internal Revenue Service ◽  
Business Planning ◽  
Internal Revenue ◽  
Business Succession ◽  
Family Business Succession

This article examines the estate freeze rules of the Internal Revenue Service with respect to their implications for family business succession planning. Specifically, the tax impact of the valuation rules for transfers of certain interests, transfers in trust, buy-sell agreements, and lapsing rights are all reviewed in order to provide recommendations for family business planning.

scholarly journals Portuguese and Brazilian Family Business: in Between Urgency and Delay Perceptions in the Succession Process

2020 ◽  
Vol 3 (2) ◽  
pp. 24
Author(s):  
Ana Paula Marques ◽  
Leandro Alves da Silva
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Executive Succession ◽  
Family Conflicts ◽  
The Family ◽  
Management Succession ◽  
Business Succession ◽  
Depth Interviews

Family business has been the focus of several studies over the last two decades and its relevance has been supported by the interdisciplinary perspectives in the fields of management, entrepreneurship, economics, psychology, and sociology. Despite that, there is still insufficient knowledge about the key role of family influences in the business, namely the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50 percent of family businesses are not passed on to the second generation and only 20 percent reach the third generation. In fact, business succession planning has been identified as one of the most challenging steps in the life of the family firm, both in maintaining the competiveness of the business, and in overcoming intra/ inter family conflicts. Nonetheless, resistance to succession, relationship founder/ successor, planning of succession, and type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life (Zahra, 2005). This paper will be supported mainly by qualitative data, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) developed in Portugal (Marques, 2018) and in Brazil (Silva, 2018), which analyses in-depth interviews conducted to Portuguese (N 23) and Brazilian (N 11) founders/managers/owners. In the present article we wish to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation.

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