scholarly journals A Family Affair: A Quantitative Analysis of Third-Generation Successors’ Intentions to Continue the Family Business

2020 ◽  
Vol 11 (22) ◽  
pp. 462-481
Author(s):  
Francine Chan ◽  
Dominique Jalandoni ◽  
Cecil Austin Sayarot ◽  
Marc Uy ◽  
Denver Daradar ◽  
...  
Keyword(s):  
Family Business ◽  
Parental Support ◽  
Psychological Control ◽  
Affective Commitment ◽  
Family Firms ◽  
Third Generation ◽  
Normative Commitment ◽  
Next Generation ◽  
Parental Psychological Control ◽  
Verbal Encouragement

Family businesses face a succession crisis where only 13% survive until the third generation (Lee-Chua, 2014). While there is sufficient literature on family business succession planning , research on the motivations behind next-generation engagement in family firms, especially for third-generation successors, is limited (Garcia, Sharma, De Massis, Wright & Scholes, 2018). Thus, the present study tested Garcia et al. (2018)’s model where perceived parental support and psychological control predict next-generation engagement, with family business self-efficacy and commitment to family business mediating this relationship. 118 third-generation successors were surveyed using established and newly developed scales based on previous literature. Mediation analysis showed that normative commitment partially mediated verbal encouragement and next-generation engagement, while affective commitment fully mediated parental psychological control and next-generation engagement. Results were also compared against 124 second-generation successors, revealing that there were no significant differences between generations. Combining these two datasets led to a new conceptual framework, where normative commitment partially mediated verbal encouragement and next-generation intention, while affective commitment partially mediated parental psychological control and next-generation intention. The results of the study can contribute to the enrichment of family business literature, particularly on the factors that influence the intentions of third-generation successors, and to the creation of effective succession plans.

scholarly journals Perceived Parental Behaviors and Next-Generation Engagement in Family Firms: A Social Cognitive Perspective

2018 ◽  
Vol 43 (2) ◽  
pp. 224-243 ◽  
Author(s):  
Patrick Raymund James M. Garcia ◽  
Pramodita Sharma ◽  
Alfredo De Massis ◽  
Mike Wright ◽  
Louise Scholes
Keyword(s):  
Organizational Behavior ◽  
Family Business ◽  
Family Relationships ◽  
Parental Support ◽  
Psychological Control ◽  
Social Cognitive ◽  
Family Firms ◽  
Cognitive Theory ◽  
Future Research ◽  
Next Generation

Next-generation engagement is a key contributor to the success and continuity of family firms. Family relationships are an important factor in shaping such engagement. However, we know little as to how this engagement process unfolds, especially during the formative years of next-generation members. Using the principles of social cognitive theory and drawing on the career development, organizational behavior, and family business literature, we theorize the indirect influence of perceived parental support and psychological control on next-generation engagement in family firms through the mediating variables of self-efficacy and commitment to the family business. We discuss several possible avenues to test and extend this model in future research.

scholarly journals Family Routines and Next-Generation Engagement in Family Firms

2018 ◽  
Vol 43 (2) ◽  
pp. 244-250 ◽  
Author(s):  
Trish Reay
Keyword(s):  
Family Business ◽  
Parental Support ◽  
Psychological Control ◽  
Family Firms ◽  
Next Generation ◽  
Family Routines ◽  
The Family ◽  
Different Types ◽  
Perceived Parental Support ◽  
The Impact

By focusing on the impact of different types of family routines and how they change, this commentary builds on concepts regarding the influence of perceived parental support and psychological control on next-generation engagement in family firms. Drawing on the organizational routines literature and the family studies literature, I propose that attention to family routines, and how these routines change (or not) over time can reveal additional insights regarding next-generation engagement in the family business.

scholarly journals An Intergeneration Solidarity Perspective on Succession Intentions in Family Firms

2020 ◽  
pp. 104225872095638
Author(s):  
Daniela Gimenez-Jimenez ◽  
Linda F. Edelman ◽  
Tommaso Minola ◽  
Andrea Calabrò ◽  
Lucio Cassia
Keyword(s):  
Family Business ◽  
Affective Commitment ◽  
Family Firms ◽  
Social Institution ◽  
Theory And Practice ◽  
Intergenerational Solidarity ◽  
Entrepreneurial Spirit ◽  
The Family ◽  
Global University ◽  
The Relationship

In enterprising families, the family, as a social institution, is the foundation of the family business. However, in enterprising families, intergenerational succession remains problematic. Using intergenerational solidarity theory, and data from the 2013 Global University Entrepreneurial Spirit Students Survey (GUESSS; N = 18,576), our findings indicate that affective commitment partially mediates the relationship between family business exposure and offspring’s succession intentions. We also find that this relationship is stronger for sons than for daughters, while birth order has no effect. Implications for theory and practice are discussed.

In the Founder's Shadow: Conflict in the Family Firm

1999 ◽  
Vol 12 (4) ◽  
pp. 311-323 ◽  
Author(s):  
Peter S. Davis ◽  
Paula D. Harveston
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Telephone Survey ◽  
Business Owners ◽  
Next Generation ◽  
Independent Variables ◽  
The Family ◽  
Nonlinear Trends ◽  
Using Data ◽  
Two Independent Variables

This paper examines the extent to which conflict across generations of family firms is due to the effects of two independent variables—generation and generational shadow. The presence of a generational shadow was indicated by whether either or both of the parents continued to influence the company once the next generation assumed control. Hypotheses predicted nonlinear trends in conflict and interactions between generation and generational shadow. Using data from a national telephone survey of over 1,000 family business owners, the results of an ANOVA test confirmed that the presence of generational shadow, in particular, that of the founder, increases organizational conflict.

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.

A Four Factor Model: A Guide to Planning Next Generation Involvement in the Family Firm

1998 ◽  
Vol 11 (2) ◽  
pp. 135-142 ◽  
Author(s):  
Eleni T. Stavrou
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Decision Process ◽  
Family Firms ◽  
Factor Model ◽  
Family Firm ◽  
Next Generation ◽  
Level Of Involvement ◽  
The Family

The involvement of and the reasons for the involvement of offspring in their parents' firms can significantly affect the firm's future. In this paper, a conceptual model is presented that explains the decision process through which the most suitable level of involvement for the next generation in the firm may be assessed. The decision process involves four factors: family, business, personal, and market. These factors set the context for managing intergenerational transitions in family firms.

Managing Generational Handover in Family Business

2021 ◽  
pp. 244-263
Author(s):  
Barbara Barabaschi ◽  
Franca Cantoni ◽  
Roberta Virtuani
Keyword(s):  
Case Studies ◽  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Specific Role ◽  
Third Generation ◽  
Two Generations ◽  
Succession Process ◽  
Hr Function ◽  
The Relationship

The aim of this chapter is to highlight the peculiarities of the succession in family-owned businesses and to discuss the main difficulties encountered by second and third-generation entrepreneurs during the succession process. By the use of direct interviews, the authors collected information about the specific role played by the multiplicity of stakeholders involved, first of all the HR function and the relationship with non family employees. The case studies analysed consider family firms that are managing their succession process. Two generations coexist in two cases with family members belonging to different branches of the same family. Non-family managers and employees represents a fundamental stakeholder that influence the success and sustainability of the succession process. One aim of the chapter is to analyse how the HR practices have changed during the succession process considering how the successors entered and integrated with non-family managers and employees according to the management for stakeholders approach.

The Harilela Enterprises: An Indian Family Business in Hong Kong

2017 ◽  
pp. 1-17
Author(s):  
John Ward ◽  
Suren Mansinghka ◽  
Elyssa Tran ◽  
Bhaskar Sambamurthy
Keyword(s):  
Hong Kong ◽  
Family Business ◽  
Family Ownership ◽  
Third Generation ◽  
Leadership Succession ◽  
Next Generation ◽  
The Third ◽  
Management Leadership ◽  
The Relationship ◽  
Business Study

A second-generation, multi-billion-dollar Asian family business, run for decades by six brothers, faces issues of ownership, family employment, management, leadership, governance, and succession as it transitions to the third generation of siblings and cousins.To examine ownership and leadership succession strategies and the preparation for next-generation leadership of a family business; study the relationship between business governance and family ownership; illustrate the dilemma of concentrated family ownership control vs. dispersed family ownership; and explore stewardship leadership as a burden and as an opportunity challenging the next-generation leader.

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.

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