Succession Planning in Family-Owned Business Evidence From an Emerging Economy

Family-owned businesses (FOBs) play an important role in the economy of a country through the creation of jobs. However, most FOBs lack strategies regarding succession planning in both developed and developing economies. This study explores the strategies that are used by FOBs to prepare future leaders. Drawing on qualitative research design, this study employed a multiple case study approach and selected 13 cases by employing a purposive sampling technique from the FOBs of Pakistan. Semi-structured interviews were conducted with the successors of FOBs. The findings reveal that succession planning is pivotal for the development of business and the successful transition of FOB from one generation to another. Most of the respondents fully understand the importance of succession planning for the sustainability of the business. However, in some cases, socioemotional aspects of generational succession planning require strategies that concurrently focus on successor suitability, the consensus of the family, mode of transition, leadership, and challenges faced by the FOBs.

Organizing Human Resources in Family Firms During Generational Succession

HRM in family firm (FF) research has moved from its narrow focus on selection and succession planning towards studying the broader antecedents, content and outcomes of HRM. Today, HRM is acknowledged as a crucial factor for attracting new talent, improving employee attitude and behavior, enhancing performance, and fostering the long-term competitive advantages. The aim of this study is to identify which tools and practices FFs adopt with HR during succession planning. For example, do they use the replacement table with the aim of providing the firm and its management with a map that allows them to make the most appropriate decisions to replace a person who is no longer available to fill a certain position? Or is it possible to identify other tools? Similar questions help the authors to investigate around the importance regarding people in firms during generational succession.

Dynastic aura: Proximity to the powerful and its promise in corporate South Korea

This article discusses the experiences of high-level managers at a South Korean conglomerate named ‘Sangdo’ who worked within the corporate group’s head office under the owner-executive family. These highly credentialled professionals were attracted to the idea of working directly under or alongside an elite, wealthy corporate dynasty who both owned the conglomerate and were its top executives. Rather than seeing this as a site of inherent conflict between the familial and the professional, I describe how the idea of working alongside and for such elites was enhanced by a ‘dynastic aura’. Through the concept of dynastic aura, I highlight how, in South Korea, families that own business groups are objects of public fascination, particularly as indicators of the future of the economy. In the context of Sangdo, I describe how managers were drawn to the potential of working with a new generation of Sangdo ownership, who sought to centralize and systematize expertise within a holding company. I show how this aura figuratively wore off for managers as they came to understand that ownership was just as entangled in the corporate form – not necessarily above or outside of it – as they were. The article highlights how certain aspects of kinship (such as dynasties and generational succession) still animate capitalist labour, even for non-family members. Additionally, the article calls attention to the way that actors engage with and understand powerful actors in their own right, going beyond accounts of anthropologists’ own direct encounters with the powerful.

Research on the Influencing Factors of Chinese Family Business's Succession from the Perspective of Re-Creation

Under the background of great changes in China's economic environment, a large number of small and medium-sized family businesses are in urgent need of transformation and upgrading that entering the channel of re-creation. For the family business, the successor signifies the future development direction and growth trend of the business. The inter-generational succession of the family business is a multistage evolution process influenced by many factors. In the specific succession practice of family businesses, the influence of the succession of family businesses is analyzed from the perspective of re-creation in combination with the actual situation. Based on the theory analysis on influencing factors of family business’s succession and the way of the questionnaire and factor analysis measure, the research had found and explained the major influencing factors of Chinese family business's succession, namely, relationship, successor, creator, re-creation, organization, environment. It provided a reference on the inter-generational succession of Chinese family businesses from the perspective of re-creation.

The diversification of the succession arrangements on non-agricultural rural properties in the northwest of Rio Grande do Sul

This article aims to analyze the methods or succession arrangements carried out by farmer’s children whose properties develop non-agricultural activities. Twenty-six young people have been interviewed in the town of Crissiumal, located in the Northwest Region of Rio Grande do Sul state. These young have been selected following some specifications: to live in rural areas on their paternal properties or to be independently settled on other properties; to live in rural areas, performing non-agricultural, pluriactive or para-agricultural activities as a way of generating income. The results demonstrate that non-agricultural activities are important both in keeping the youth in the rural areas and in maintaining the properties’ succession. Therefore, it is possible to find three succession arrangements: generational succession, rural succession, and hereditary succession. It means that the permanence of young people, children of farmers, in the rural area goes beyond the traditional model of generational succession. There are other arrangements in progress when working within the possibilities of non-agricultural activities. Keywords: Continuity. Rural Area. Succession. Rural Development.

Organizing Human Resources in Family Firms During Generational Succession

HRM in family firm (FF) research has moved from its narrow focus on selection and succession planning towards studying the broader antecedents, content and outcomes of HRM. Today, HRM is acknowledged as a crucial factor for attracting new talent, improving employee attitude and behavior, enhancing performance, and fostering the long-term competitive advantages. The aim of this study is to identify which tools and practices FFs adopt with HR during succession planning. For example, do they use the replacement table with the aim of providing the firm and its management with a map that allows them to make the most appropriate decisions to replace a person who is no longer available to fill a certain position? Or is it possible to identify other tools? Similar questions help the authors to investigate around the importance regarding people in firms during generational succession.

Succession Planning in Family-Owned Business Evidence From an Emerging Economy

Family-owned businesses (FOBs) play an important role in the economy of a country through the creation of jobs. However, most FOBs lack strategies regarding succession planning in both developed and developing economies. This study explores the strategies that are used by FOBs to prepare future leaders. Drawing on qualitative research design, this study employed a multiple case study approach and selected 13 cases by employing a purposive sampling technique from the FOBs of Pakistan. Semi-structured interviews were conducted with the successors of FOBs. The findings reveal that succession planning is pivotal for the development of business and the successful transition of FOB from one generation to another. Most of the respondents fully understand the importance of succession planning for the sustainability of the business. However, in some cases, socioemotional aspects of generational succession planning require strategies that concurrently focus on successor suitability, the consensus of the family, mode of transition, leadership, and challenges faced by the FOBs.

Family business in tourism: an international systematic review of literature with an emphasis on Latin America

PurposeThe purpose of this study is to analyze the current state of knowledge of family businesses in tourism through a systematic review of international academic literature with an emphasis on Latin America.Design/methodology/approachThe paper opted for a systematic review involving analyzing international academic documents, articles, dissertations and papers that presented both theoretical and empirical research results. The search was conducted from January to April 2019 on online databases and search engines.FindingsStudies are concentrated in strategic planning and competitiveness. Most of them are published since 2014 by Ibero-American countries. Some features are coincident among the varied geographical contexts, as the importance of generational succession planning; search for family welfare throughout the business; and the existence of own capacities and resources. Besides, the owner's objectives and gender involvement differ in the research results of developed countries and emerging economies; some implications for Latin America are analyzed.Originality/valueThe family business has international economic relevance, especially in tourism. Still, the studies in this field are few, even when tourism implies processes and interactions that can influence the development of the companies that integrate their industry. In this way, a compilation of the recent works is carried out, in order to identify how the complex family dynamics with tourism are integrated into the studies, main contributions to the field and knowledge gaps.