scholarly journals An Integrative Conceptual Framework for Sustainable Successions in Family Businesses: The Case of Taiwan

2018 ◽  
Vol 10 (10) ◽  
pp. 3656 ◽  
Author(s):  
Jau Liu
Keyword(s):  
Family Business ◽  
Business Models ◽  
Family Relationship ◽  
Family Businesses ◽  
Factors Affecting ◽  
Complex Decision Making ◽  
Complex Decision ◽  
Business Succession ◽  
Relationship Of ◽  
Succession In Family Business

Family businesses have long been one of the mainstream business models in developing countries. The smooth succession of control in family businesses is the key to their sustainable development. However, compared with other companies, succession in family business has demonstrated unique complexity, which also affects the development of the business. The paper is based on a review of the existing literature, starting from the theory of family business succession and combining with grounded theory. After that, we conducted field interviews of experts, coding the key factors affecting succession in family businesses in Taiwan. Finally, we explored the considerations and implications of the succession for inheritance planning. The results of this study show that consideration of succession in family businesses involves a multi-dimensional and complex decision-making process. Among the key considerations, it is found that corporate characteristics, family capital and niche inheritance are the most important without consideration of whether the continuation of the business after succession will be doomed to failure. In addition, the family relationship of affection and trust and commitment between both predecessor and successor are important factors that cannot be ignored, especially in a rapidly changing competitive market environment.

scholarly journals The Determinants of a Successful Family Business Succession in Indonesia: A Multiple Case Study

2018 ◽  
Vol 1 (2) ◽  
pp. 87
Author(s):  
Suresh Kumar ◽  
Qireina Prameswari
Keyword(s):  
Family Business ◽  
Significant Proportion ◽  
Family Businesses ◽  
Related Factors ◽  
Business Context ◽  
Multiple Case ◽  
Business Succession ◽  
Relationship Of ◽  
Family Business Succession

<p>Family businesses play an important role in both developed and developing countries. They employ a majority of workforce establishing the newest jobs and generating a significant proportion of the gross domestic product. About 96% of the 165,000 companies established in Indonesia are family businesses. However, the survival rate of passing through the stage of second generations in family business is very low. This research has been conducted to analyse the determinants of successful family business successions. Qualitative research method was used to study four families. The conclusion from the study was that the determinants of successful family business succession are managing a complex relationship of successors and incumbent related factors, family context, business context, and having a structured agreement system.</p>

Promoting Family: A Contingency Model of Family Business Succession

2008 ◽  
Vol 21 (1) ◽  
pp. 15-30 ◽  
Author(s):  
Susanne Royer ◽  
Roland Simons ◽  
Britta Boyd ◽  
Alannah Rafferty
Keyword(s):  
Family Member ◽  
Conceptual Model ◽  
Tacit Knowledge ◽  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
Contingency Model ◽  
Business Succession ◽  
Succession In Family Business ◽  
Family Business Succession

Succession is a challenge to family businesses for a number of reasons, including the need to address the issue of intergenerational handover. This article focuses on one aspect of succession in family business by investigating when family members are preferred as successors. Results from 860 family businesses indicate that specific (tacit) knowledge characteristics combined with a favorable transaction atmosphere, in certain contexts, make a family member the most suitable successor. A conceptual model is presented that outlines when inside-family succession is preferred.

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.

Successful family business succession: Utilizing peer groups for critical leadership skills development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jenell Lynn-Senter Wittmer ◽  
Clinton Oliver Longenecker ◽  
Angie Jones
Keyword(s):  
Leadership Development ◽  
Family Business ◽  
Succession Planning ◽  
Leadership Skills ◽  
Peer Groups ◽  
Family Businesses ◽  
Business Leaders ◽  
Content Type ◽  
Critical Leadership ◽  
Business Succession

Purpose The current study explores the necessary leadership skills required for leadership succession in family businesses as well as best development activities for each skill. The current study provides suggestions for best practices in developing and utilizing peer groups as a leadership development method. Design/methodology/approach A needs assessment was conducted by surveying 150 family-business leaders. Leaders were asked, “What are your most pressing leadership development needs for your organization as you move toward succession? A follow-up question was then asked: “For each of these skills, what method would best help develop this skill for family business leaders?” The responses were content analyzed, placed into themes, and rank ordered. Findings High agreement amongst business leaders was found as eight leadership skills were cited by high percentages of family-business leaders. Leaders overwhelmingly reported peer developmental activities as being the best method for developing these skills. Originality/value Succession planning in family-businesses is critical as many family business fail to make it past the first or second generation. However, little research explores what specific leadership skills are necessary for optimal succession. As well, many leaders in public organizations seek individual methods of development, such as executive coaching, whereas family business leaders seek group activities to learn with/through their peers.

scholarly journals Family Business Succession in Different National Contexts: A Fuzzy-Set QCA Approach

2019 ◽  
Vol 11 (22) ◽  
pp. 6309 ◽  
Author(s):  
José António Porfírio ◽  
Tiago Carrilho ◽  
Joseph Hassid ◽  
Ricardo Rodrigues
Keyword(s):  
Family Business ◽  
Fuzzy Set ◽  
Qualitative Comparative Analysis ◽  
Family Businesses ◽  
Expectation States ◽  
Succession Plan ◽  
Limited Applicability ◽  
Expectation States Theory ◽  
Business Succession ◽  
Family Business Succession

Family business succession is a key topic that has attracted considerable attention from researchers, especially in the last decade. Most research, however, is based on case studies with limited applicability and fails to present comparisons across international contexts that highlight differences in succession processes. We apply expectation states theory to analyze a sample of 128 observations in two Southern European countries, Portugal and Greece. We study configurations of successors’ characteristics, family business characteristics, the existence (or absence) of a succession plan, and successors’ motivation to succeed. Our aim is to reveal how these issues affect successors’ perceptions of preparation for succession using fuzzy-set qualitative comparative analysis (fsQCA). Family businesses are a dominant organizational form all over the world, and succession issues are critical for the sustainability of family businesses. Our findings suggest that different configurations of conditions influence successors’ perceptions of preparation for family business succession. Moreover, we verify the influence of cultural differences on these processes. This research helps fill a gap in the literature, showing the role of a set of characteristics in successors’ perceptions of preparation for family business succession. Our conclusions provide insight into the types of policies that can promote successful 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.

The Effect of Confucian Values on Succession in Family Business

2006 ◽  
Vol 19 (3) ◽  
pp. 235-250 ◽  
Author(s):  
Jun Yan ◽  
Ritch Sorenson
Keyword(s):  
Social Context ◽  
Interpersonal Relationships ◽  
Family Business ◽  
Family Firms ◽  
Complete Understanding ◽  
Confucian Values ◽  
Business Succession ◽  
Succession In Family Business ◽  
Family Business Succession ◽  
Business Family

This article examines Confucian values and their effect on family business succession. Several implications are drawn. One of these is that Confucianism places family business in a social context in which the interpersonal relationships inside and outside the business family are subject to a variety of environmental influences. Examining family firms in their social context provides more complete understanding of the dynamics underlying choices and activities in family firms.

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.

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