Succession Planning on Muslim Family Enterprises

In Islamic faith and ideology, tremendous emphasis is paid to leadership as an essential instrument for realizing an ideal society which is built on fairness and compassion. Muslims practice the Islamic faith, which Islamic law regulates the faithful's way of life, from moral issues to etiquette and business conduct. Established laws governing the Muslim's behaviour and activities are included in Sharia decisions, and many Islamic teachings deal with business activities. The business etiquettes and rules of succession are contained in Sharia laws. Sharia law offers guidelines on integrity, fairness, risk, fraud, bribery, and kindness in business activities. The family business culture is influenced by the business element of the enterprises, which offers principles, mutual goals, commitment towards a prosperous future, and complimentary relationships between enterprises. The family enterprises are considered in a socio-cultural and religious environment in which the business is operated to gain a greater awareness of leaders' succession and successor development.

Examining Family Firm Succession From a Social Exchange Perspective

We use a social exchange perspective to review family firm succession literature owing to its fit with the multiphase, multistakeholder nature of the process. We searched the history of 34 journals, finding 88 published or forthcoming articles that quantitatively examined succession. We consider the primary phases of the management succession process (ground rules, successor development, and transition) and the relevant stakeholder exchanges occurring during each phase, including exchanges between incumbents and successors, within family boundaries, and across family boundaries. We contribute to the family firm succession literature by identifying how a social exchange perspective can help guide future research.

An assessment of the determinants of successor development in family businesses

Purpose: The primary objective of this study is twofold: Firstly, to assess some of the determinants of successor development in family businesses with the focus on the role of the senior generation family members, and secondly, to make practical recommendations on actions that families can take to ensure successful management succession. Research methodology: The construct validity of the measuring scale was assessed by means of an exploratory factor analysis and by calculating Cronbach alpha coefficients. Thereafter, the correlation between the variables was explored by means of correlation analysis, t-tests and effect sizes. Findings: In this study the exploratory factor analysis provides some evidence of construct validity, but further research is needed before the measuring scale can be utilised to diagnose these issues in small and medium-sized family businesses. It is recommended that more advanced statistical procedures for scale validation, such as structural equation modelling, should be utilised in further development of the questionnaire. Supplementary research on the use of the measuring scale is also necessary to refine its norms. Practical implications: The importance for family businesses is that a better understanding of the determinants of the senior generation's role in the development of the prospective successor could contribute to the successful transfer of the business from the senior to the younger generation family members. It is, however, important to provide feedback on the diagnosis based on the proposed scale to individual family businesses. Originality/Value: Understanding the determinants of the role of the senior generation owner-manager in the development of the prospective successor is important to sensitise both role-players', as well as the senior and younger generations regarding their expectations, fears and needs in the process. This makes this measuring scale a useful tool to identify the state of these factors in the family business. Conclusion: This study confirms the important role that the senior generation family members play in the development of the younger generation successors to ensure that the prospected successor is competent to successfully manage the family business after management succession and to ensure the sustainability of the family business.

A Comparison of Successor Development in Family and Nonfamily Businesses

Although many streams of management research address leadership, succession, and executive development issues, significant gaps in the literature remain. In particular, few studies have systematically explored the systems by which the future leaders (successors) of family firms are developed. This research presents a descriptive study in which the successor development approaches of small to medium-sized family and nonfamily firms are compared. The findings indicate that (1) family firms favor more personal, relationship-centered approaches to successor development; (2) nonfamily firms prefer formalized, task-oriented development approaches; and (3) company size has no real effect on successor development.

The Impact of Timing and Mode of Entry on Successor Development and Successful Succession

Family businesses frequently are disrupted by the process of succession of leadership and ownership. This article focuses on causes of conflict and how to manage success after siblings have entered the business.