Context as a Provider of Key Resources for Succession: A Case Study of Sustainable Family Firms

Although succession is the single most important issue in family-owned businesses (FOBs), there is scarce comprehensive and integrative analysis of the context (i.e., the social, organizational, and normative setting) where succession events occur. Research usually focuses on the success or failure of succession processes, instead of the risks faced by FOBs during succession. The succession process takes time and multiple actors are involved. Therefore, succession is influenced by uncertainty and unforeseen events. This study addresses the aforementioned gap in the literature by investigating how context can reduce the risk of failure in succession. Based on organizational change theory and the resource-based view, this study considers family and business circumstances where interactions between actors take place and succession occurs. Since the research goal is deeply embedded in context, this paper presents a comparative case study of three Spanish FOBs that have experienced different kinds of organizational change in relation to management succession. The main conclusion is that risk of succession failure depends not only on detailed process design and planning, but also on a well-developed firm and family context that provides sufficient familiness resources to cope with unexpected events and address conflicts.

CEO outsiderness and firm performance in an emerging economy: The moderating role of managerial discretion

Inconsistent findings from prior research on the performance consequences of new Chief Executive Officer (CEO) origin led us to study the moderating effect of managerial discretion on the link between CEO outsiderness and firms’ post-succession performance. Data from 75 CEO succession events from an emerging economy show that new CEO outsiderness, without managerial discretion context influences, has no direct impact on post-succession performance. Further, our findings emphasise the moderating impacts of managerial discretion, stemming from factors in a company’s external and internal contingencies, which either strengthen or weaken the association between new CEO outsiderness and post-succession firm performance. It is found that market complexity, but not munificence, provides CEOs with more discretion in the Turkish context, thus strengthening the positive associations between CEO origin and firm performance. Firms inertia weakens both managerial discretion level and the association between CEO outsiderness and firm performance. The results show that internal corporate governance also matters. Finally, when a CEO assumes the dual role of both the chairman and the CEO, the link between CEO outsiderness and performance of the firm becomes stronger.

Game Theory and Family Business Succession

One of the most significant challenges to enduring family businesses is the process of passing the leadership of a firm from one generation to another. This article introduces game theory as a model for examining succession as a set of rational but interdependent choices made by individuals about a firm’s leadership. Its primary contribution is demonstrating the application of game theory to understanding the decisions and outcomes of succession events.

Role of selected dark septate endophyte species and other hyphomycetes as saprobes on moss gametophytes

Dark septate endophytes (DSEs) live asymptomatically in the roots of vascular plants, are common in arctic and alpine areas, and are thought to play a quasimycorrhizal role. It is not known, however, whether they precede or arrive with their hosts. Previously reported enzymatic abilities of Phialocephala fortinii suggest that DSEs can live on organic debris in the soil, but there is little direct or experimental evidence for this. Phialocephala fortinii , Leptodontidium orchidicola , Cadophora melinii , Cadophora luteo-olivacea , and Lecythophora sp. were inoculated onto autoclaved Hylocomium splendens gametophytes and incubated for 3 months to determine if they degrade this organic material based on observations made using light and scanning electron microscopy. All fungi were able to colonize the bryophyte tissue to some extent. Lecythophora sp. and L. orchidicola penetrated cells by forming bore holes. Cadophora luteo-olivacea and P. fortinii were also observed inside cells, but bore holes through bryophyte cell walls were not observed. Cadophora melinii sporulated and grew abundantly on the surface of gametophytes but did not appear to penetrate cell walls. Phialocephala fortinii and L. orchidicola formed sclerotia in the gametophytes similar to those formed in roots. These results suggest that DSE fungi can persist and produce propagules, i.e., sclerotia and conidia, in the absence of host roots. These observations support the hypothesis that DSE fungi are able to precede their hosts during primary succession events.

An exploratory study on the executive recruitment and performance in Greece

Based on 42 succession events in Greek organizations, the study aims to examine the relationship between antecedent organisational characteristics such as size and performance of the firm and the source of successor (insider versus outsider). In addition, Chief Executive Officer’s (CEO’s) demographic characteristics such as age, functional and educational background as well as industry, organization and position/job tenure- are discussed in relation to organisational effectiveness.