The Role of Social and Human Capital in the Succession Process in Family Firms

2013 ◽  
Keyword(s):  
Human Capital ◽  
Family Firms ◽  
Succession Process

La comunicazione come fattore strategico nell'azienda familiare

2009 ◽  
pp. 153-171
Author(s):  
Walter Zocchi
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Minor Importance ◽  
Business Decision ◽  
Two Generations ◽  
Managerial Implications ◽  
The Common ◽  
Succession Process ◽  
The Difference

- The succession process, is one of the main themes of Family Business. The literature widely analysed this topic through the identification of the factors that characterized successful intergenerational transfers. This research, on the contrary, wants to go further the common rationalization of assets, governance and the successor's experiences and knowledge, analysing elements usually considered of minor importance but that, in our opinion can make the difference becoming strategic elements. In particularly, will be deepened the role of communication in the passage of the business to the next generation. Beginning with the examination of the literature, this essay aims to give a theoretical framework to better understand the results of an empirical study - on a representative sample of Italian family firms - which main aim was to study the organizational and managerial implications caused by the presence two generations of entrepreneurs and the role of communication in business decision processes.

Legitimation strategies in an emerging field: family firm succession consultancy in Germany

2020 ◽  
Vol 64 (2) ◽  
pp. 58-73
Author(s):  
Regina Lenz ◽  
Claudia Schormüller ◽  
Johannes Glückler
Keyword(s):  
Family Firms ◽  
Formation Processes ◽  
Organizational Fields ◽  
Consulting Services ◽  
Rural Economies ◽  
Previous Contact ◽  
Succession Process ◽  
Field Formation ◽  
Support Family

AbstractFinding a successor has become a severe challenge for family firms in Germany. As family firms are disproportionately concentrated in rural economies, succession has also become a considerable threat for peripheral regions and their labor markets. It therefore lies in the interest of regional stakeholders to help support family business continuity. One way to do this is by providing consulting services for family entrepreneurs, especially when searching for a family-external successor. Succession consultancy, however is still in its infancy. Applying the framework of the organizational field that centers on the concept of legitimacy, this paper examines the strategies consultants employ in order to get selected by family entrepreneurs in their succession process, as well as consultants’ strategies to match family firms with external successors. Based on expert interviews with succession consultants in the region of Upper Palatinate in Bavaria, we demonstrate the importance of geography and interpersonal linkages in establishing legitimacy in the early stages of field formation, when heterogeneous groups of actors offer their services without set rules or standards. Our content analysis sheds light on the variety of strategies based on trust, networked, and public reputation in order to gain legitimacy as consultants, depending on whether or not they can draw on existing relationships with family firms. We furthermore identify a discrepancy between these legitimation strategies and the actual ways that consultants use to match family firms with external successors. Here, regardless of their previous contact with family firms, geography plays a major role in constraining both consulting and succession: Family firms more readily accept local consultants, and the consultants also preferred to screen succession candidates through their regional networks due to the higher chances of successful succession when finding external successors from within the same region. Conceptually, our analysis contributes to institutional theory by carving out legitimacy-enhancing mechanisms in emerging organizational fields, and by demonstrating the crucial role of geography and interpersonal linkages for succession as well as field formation processes.

Employee Mobility in Family and Non-Family Firms: The Role of Family Firm-Specific Human Capital

2020 ◽  
Vol 2020 (1) ◽  
pp. 17634
Author(s):  
Michael C. Withers ◽  
Francesco Chirico ◽  
Giuseppe Criaco ◽  
Massimo Bau'
Keyword(s):  
Human Capital ◽  
Family Firms ◽  
Family Firm ◽  
Employee Mobility ◽  
Specific Human Capital

scholarly journals Impact of effective governance structure on succession process in the family business: exploring the mediating role of management succession planning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
V.V. Renuka ◽  
Bhasi Marath
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Firms ◽  
Governance Structure ◽  
Content Type ◽  
Mediating Role ◽  
Perceived Success ◽  
Management Succession ◽  
Succession Process

PurposeThe aim of this research is to analyze empirical evidence of the effect of governance structure (GS) on perceived success of the succession process. It is also reported that in India, family firms have a more informal organization structure and governance and have an informal and unplanned approach to bringing the successors into family business. Previous studies have reported that GS is an important factor for a successful succession process. This study examines the role of management succession planning as an intervening variable to achieve perceived success of the succession process.Design/methodology/approachData have been collected using a questionnaire schedule with 113 respondents who are successors from family business firms in Kerala, India. The study uses snowball sampling technique. Partial least square-structural equation modeling has been used to do data analysis.FindingsThe results of the study showed that GS has a significant positive effect on the success of the succession process. GS has a significant positive effect on management succession planning. Management succession planning partially mediates the relationship between GS and perceived success of the succession process.Research limitations/implicationsThe results of the study indicate the effect of GS on the relationship between, perceived success of the succession process and management succession planning. The mediating role of management succession planning in the above relationship is also confirmed. Therefore, before starting the succession process a good GS should be put in place for ensuring the success of the succession process. Family firms must implement the succession plan well to make the succession process successful.Originality/valueThe main contribution of the study is to empirically investigate the effect of GS and management succession planning to enhance the success of the succession process.

scholarly journals Management Accounting Change in Family Firms: The Ambivalent Role of the Successor

2020 ◽  
Vol 11 (2) ◽  
pp. 18
Author(s):  
Annalisa Sentuti ◽  
Francesca Maria Cesaroni
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Management Accounting ◽  
Longitudinal Case Study ◽  
Theoretical Frameworks ◽  
Process Of Change ◽  
Succession Process ◽  
The Relationship

Why does a process of management accounting change (MAC) that started with the best premises for a successful conclusion stop? What could be the causes of failure? In the last few decades, several authors have tried to answer these questions in the field of MAC by adopting different theoretical frameworks and offering various responses. However, few contributions have dealt with this theme from the family’s perspective, and they haven’t considered the specific challenges concerning such firms, like those connected to the succession process.However, few contributions have dealt with this theme from the perspective of family and considering their specific characteristics and challenges, as in particular the succession process. To fill this gap, this paper explores the relationship between MAC and the succession process aiming to answer the question: “How can a successor influence the start, development and final outcome of a MAC process in a family business?” Using a longitudinal case study, the paper explores an Italian family firm in which a MAC and a succession process started simultaneously. However, despite all the best premises for its development and implementation, the MAC process was interrupted. The analysis focuses on the successor and his goals and motivations to better understand which role he assumed in the MAC process. Findings suggest that a successor can play an ambivalent role. He can be a key agent in promoting and triggering a MAC process in family firms, but he can also become a major obstacle to the process of change when his personal objectives and interests prevail over the company’s needs.

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

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