scholarly journals Information asymmetries in intrafamily business succession

2020 ◽  
pp. 234094442094252
Author(s):  
Sven Wolff ◽  
Sabrina Schell ◽  
Petra Moog
Keyword(s):  
Family Business ◽  
Family Members ◽  
Jel Classification ◽  
Specific Information ◽  
Information Asymmetries ◽  
Complex Series ◽  
Ownership Transfer ◽  
Succession Process ◽  
Business Succession ◽  
Insight Into

The often long-lasting process of intrafamily business succession involves contracts for management and ownership transfer that unfold in a complex series of stages. The older and larger a family business, the more heterogeneous the involved family members’ interactions and interests can become. These differences become obvious in the succession process. Also, in entrepreneurial families, information is not easy to obtain and is neither perfect nor unlimited, for example, with regard to expectations regarding the duration or the type of business succession. Information asymmetries can arise. This article investigates the drivers of information asymmetries and provides insight into the current research by investigating information asymmetries and their impact during different phases of intrafamily business succession. Data from 215 German firms reveal the occurrence of specific information asymmetries during different phases of intrafamily business succession. JEL CLASSIFICATION M1; M59; D82; L2

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.

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

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.

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.

The influence of family relationships in the succession

2015 ◽  
Vol 5 (2) ◽  
pp. 238-256 ◽  
Author(s):  
Argentina Soto Maciel ◽  
Maria Isabel de la Garza Ramos ◽  
José Luis Esparza Aguilar ◽  
Juan Manuel San Martín Reyna
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Relationships ◽  
Family Cohesion ◽  
Influential Factors ◽  
Content Type ◽  
Family Commitment ◽  
Succession Process ◽  
Business Succession ◽  
The Relationship

Purpose – The purpose of this paper is to assess the factors identified in the model of influence of family relationships in a process of succession. Design/methodology/approach – To that end, an exploratory factor analysis of a model is conducted. Such model includes four factors: family cohesion and adaptability, family commitment with the business, the relationship between the owner-manager and the successor, and the planning and training of the successor. Findings – The results confirm the relevance of the four factors used and enable the authors to identify the structure of their coefficients within each factor. Originality/value – Family involvement constitutes one of the most influential factors in the complex management of family businesses, as it can even threaten their survival. One of the most critical moments in the life of a family business is the interaction during the succession process. Therefore, the succession process continues to be a topic of growing interest to researchers in the family business literature. Given the importance of family business succession.

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.

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