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Succeeding Generations: Realizing the Dream of Families in Business
Abstract
Finding the right successor to a well-loved founder or president is often the most difficult task an organization can face--and the challenge can be even greater for family-run businesses. Succeeding Generations explores leadership transitions in family businesses, offering a clear-eyed assessment of the different options, from direct succession to building partnerships between siblings and cousins. Family-owned companies may dominate the worldwide business landscape, yet surprisingly few are successfully passed down from one generation to the next, and fewer still reach the third generation intact. Author Ivan Lansberg, an organizational psychologist who grew up in a family business, examines the reasons behind this high failure rate and reveals the factors that contribute to long-term success. He offers practical advice on how to mentor successors, how to set up a systematic selection process, and how to make the best use of the board of directors during times of transition. With a wealth of examples from companies in the United States, Europe, and Latin America, Succeeding Generations provides a thoughtful and comprehensive look at the sensitive dynamics of leadership succession in family businesses.
... In the Italian context, in-laws are employed in approximately 30% of family SMEs (Biasetti et al., 2009), yet their roles remain largely invisible in research. Their presence evokes ambivalence, especially amid high divorce rates, leading some families to view them as temporary or risky actors (Gersick et al., 1997;Lansberg, 1999). Inlaws often perceive themselves as marginal or excluded, experiencing a lack of psychological belonging despite formal ties. ...
... As newcomers, in-laws may struggle to integrate fully, often viewed as outsiders by the founder and thus facing exclusion or marginalization (Friedman, 1991;Rosenblatt, 1994). The founder's attachment to the family business, coupled with concerns about preserving its legacy, can heighten tensions, as in-laws may be seen as potential disruptors (Gersick et al., 1997;Lansberg, 1999). In-laws frequently perceive themselves as undervalued, feeling they are treated less favorably than biological members (Poza & Messer, 2001;Schulze et al., 2003). ...
... In-group members may see in-laws as threats to their social hierarchy, leading to exclusion from decisions and information, thereby fostering feelings of isolation among inlaws (Friedman, 1991;Rosenblatt, 1994;Saviet & Greif, 2021). Additionally, competition for resources and influence within the in-group can exacerbate conflicts, as brothers-and sisters-in-law may view in-laws as competitors for authority and career advancement (Lansberg, 1999;Sharma, 2004). Furthermore, differing loyalties and priorities between in-laws and siblings-in-law, such as family unity versus personal or spousal interests, can lead to intragroup conflicts within the business (Alvarado & Euwema, 2024;Gersick et al., 1997;Schulze et al., 2003). ...
This study explores the emotional and relational experiences of in-laws in family
businesses—an under-researched area in the family business literature. Drawing on Social Identity Theory (SIT), the research investigates whether in-laws working in Italian family SMEs experience a recurring pattern of perceived exclusion, identity frustration, and career dissatisfaction. Based on survey data collected from 158 in-laws working in Italian family firms, the study identifies a multifactorial configuration comprising five interrelated factors: perceived unfair treatment by the founder and siblings-in-law, identity frustration, career dissatisfaction, and intention to leave the family business. These factors are significantly and positively correlated, and all are negatively associated with self-categorization as a family member. Gender differences also emerged, with sons-in-law reporting higher frustration and stronger self-categorization compared to daughters-in-law. By applying SIT to intrafamily
dynamics, this study extends existing theory to examine how ambiguous identity
and group membership shape in-law experiences. The findings highlight the need for more inclusive governance and integration strategies in family firms to prevent disengagement and conflict.
... Las empresas familiares suelen estar influenciadas por vínculos emocionales y lealtades que pueden complicar la toma de decisiones objetivas y racionales. Lansberg (1999) señala que los conflictos intergeneracionales y las expectativas divergentes entre los miembros de la familia pueden dificultar la identificación y preparación de un sucesor adecuado. La falta de comunicación abierta y la incapacidad de abordar estos conflictos de manera constructiva pueden resultar en la fragmentación de la familia y la empresa. ...
... A continuación, se presenta la tabla 1 que resume los principales obstáculos identificados en la literatura y su impacto en la gobernanza y liderazgo de las empresas familiares. Nota: Los datos presentados en esta tabla se han adaptado de las investigaciones de Gersick et al. (1997), Lansberg (1999), y Ward (2011). ...
... Las relaciones familiares en las empresas familiares están impregnadas de emociones y vínculos afectivos que pueden complicar la toma de decisiones objetivas y estratégicas. Según Lansberg (1999), las decisiones en estas empresas no se basan únicamente en criterios empresariales, sino que también están influenciadas por lealtades familiares y consideraciones personales. Este entrelazamiento de relaciones personales y profesionales puede llevar a la adopción de decisiones que beneficien a la familia a corto plazo, pero que no necesariamente sean las más adecuadas para la sostenibilidad de la empresa a largo plazo. ...
The article examines diversity and inclusion practices in the workplace in Ecuador, highlighting the benefits and challenges of their implementation. Despite a favorable legal framework, many organizations lack structured policies, limiting the effectiveness of inclusion initiatives. Cultural biases and lack of awareness are significant barriers, while diversity is perceived more as an obligation than a valuable resource. The benefits of a diverse workforce include improved financial performance, greater innovation, job satisfaction and talent retention. To overcome the challenges, ongoing training programs, top management support, and monitoring and evaluation mechanisms are recommended. The adoption of effective policies and a visible commitment to inclusion can transform organizational culture and enhance both business performance and social development in Ecuador
... In contrast, family firms in which family members are raised in a weak family ties' culture do not have a competitive advantage over nonfamily firms. Indeed, family members with weak connections are likely to have competing goals and a lack of family values as a benchmark (Lansberg, 1999). As a result, the conflict among family members is high, which creates high agency costs. ...
... In contrast, weak family ties are linked to higher agency costs for firms. Specifically, families with frail intra-connections face the challenge of diverging aims and priorities among members (Lansberg, 1999). When family members pursue discordant self-interests at each other's expense, it undermines firm function and output (Kaye, 1991). ...
... This type of family firm probably incurs greater agency costs as well, given family members are prone to pursue discrepant objectives. Minor family owners may also engage in free-riding behaviors that exploit the wealth of controlling family parties (Lansberg, 1999;Schulze et al., 2003). Collectively, weak family ties can breed afflictive family-level issues like competing priorities, opportunism, shirking, and adverse selection phenomena (Dyer, 2018). ...
... The founder might even try to undermine the successor's capabilities to make the firm more dependent on himself (Morris, Williams & Nel, 1996;Seymour, 1993). As a matter of fact, many founders see the family firm as an extension of themselves, something which they want to control completely (Lansberg, 1999;Dyer, 1986). ...
... Furthermore, the interaction, relationship, commitment and involvement of the founder are factors which influence the succession. Szulanski (1996) emphasizes intimacy and the smooth flow of communication as vital, and according to Handler (1994) and Lansberg (1999) the success of the transfer depends on the relationship between predecessor and successor. The reality is that more often than not, fatherson relationships tend to be tense and complex (Kets de Vries, 1996). ...
... As we pointed out earlier, the preparation of the succession plays a key role in the dynamics of family business, in case of the continuity of the next generation is assumed in the management strategic decisions for the future. However, in most family firms, the lack of succession planning prevails, and is directly related to the founder's resistance (Lansberg, 1999). For the purposes of this paper, we intend to explore mostly some attitudes toward succession, framed by the resistance shown in the behaviours both of the founders, and of the second generation or subsequent ones. ...
Family firms are considered the world’s most predominant form of business organisation. Notwithstanding the fact that there is a lack of consensus with regards to their definition, on recognise that family firms are different from non-family businesses due to their specific relations at three levels, namely ownership, business and family. It would appear that the family influences, shapes and conditions both the firm and its continuity, mainly through the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50% of family businesses are not passed on to the second generation, and only 20% reach the third generation. Also, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER), the empirical findings have proved that the business succession planning has been identified as one of the most challenging steps in the life of the family firm, which demands for appropriate analysis. In fact, resistance to succession, relationship founder/successor, planning of succession, type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life. In this article, we aim to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation. Based on an online survey (N 1148) and on in-depth interviews conducted to founder/manager/owner (N 23), we will seek to point out major challenges faced by the Portuguese family business, as far as this matter is concerned.
... To this end, we draw on cybernetic theory in the tradition of Gregory Bateson in general and his concept of an 'outside element ' (1972, p. 81) in combination with one of his key constructs, schismogenesis (ibid., p. 99-113), in particular. We then perform a reconceptualisation of pertinent literature on changing conflict dynamics gathered in family business research and FB consultancy contexts (Großmann, 2014;Lansberg, 1999;von Schlippe, 2014) to develop explanations and identify key mechanisms behind the surprising impact third elements on conflict regulation or escalation. Our study thus contributes to research at the interface of family business research, conflict research and cybernetic theory development. ...
... [Colour figure can be viewed at wileyonlinelibrary.com] some quite impersonal circumstance' as we demonstrate the impact objects, processes, or may have on the emergence and resolution of schismogenetic conflicts. In so extending the concept of outside element to a more comprehensive concept of 'the third' (Großmann, 2014;Lansberg, 1999;von Schlippe, 2014), we harness upto-date cybernetic concepts for a new analytical approach to conflict in FB research in general and to the mechanisms behind the impact of third elements on the escalation or de-escalation of conflicts in BF in particular. For this purpose, we perform a reconceptualisation of pertinent family business research in a bid to develop a typology of cases of third element impact on conflict dynamics and its specific configurations. ...
... In 'Succeeding Generations', Lansberg (1999) draws on a wealth of examples and experiences gained as a BF consultant. Concerning conflict management, he describes that co-leading BF members may a. Rely on a trusted third person (e.g., a business associate, a non-family manager, or a senior advisor) who serves as a mediator in cases of conflict (Lansberg, 1999, p. 134f), b. ...
This conceptual paper explores the surprising impact exerted by third elements on the escalation and de-escalation of conflicts in business families. To this end, we draw on core concepts of Batesonian cybernetic theory to perform a reconceptualisation of pertinent literature on changing conflict dynamics gathered in family business research and consultancy. Based on this reconceptuali-sation, we identify explanations and key mechanisms for the impact of third elements on conflict dynamics. Our study thus contributes to research at the interface of family business research, conflict research and cybernetic theory development.
... The founder might even try to undermine the successor's capabilities to make the firm more dependent on himself (Morris, Williams & Nel, 1996;Seymour, 1993). As a matter of fact, many founders see the family firm as an extension of themselves, something which they want to control completely (Lansberg, 1999;Dyer, 1986). ...
... Furthermore, the interaction, relationship, commitment and involvement of the founder are factors which influence the succession. Szulanski (1996) emphasizes intimacy and the smooth flow of communication as vital, and according to Handler (1994) and Lansberg (1999) the success of the transfer depends on the relationship between predecessor and successor. The reality is that more often than not, father-son relationships tend to be tense and complex (Kets de Vries, 1996). ...
... As we pointed out earlier, the preparation of the succession plays a key role in the dynamics of family business, in case of the continuity of the next generation is assumed in the management strategic decisions for the future. However, in most family firms, the lack of succession planning prevails, and is directly related to the founder's resistance (Lansberg, 1999). For the purposes of this paper, we intend to explore mostly some attitudes toward succession, framed by the resistance shown in the behaviours both of the founders, and of the second generation or subsequent ones. ...
Family firms are considered the world’s most predominant form of business organisation. Notwithstanding the fact that there is a lack of consensus with regards to their definition, on recognise that family firms are different from non-family businesses due to their specific relations at three levels, namely ownership, business and family. It would appear that the family influences, shapes and conditions both the firm and its continuity, mainly through the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50% of family businesses are not passed on to the second generation, and only 20% reach the third generation. Also, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER), the empirical findings have proved that the business succession planning has been identified as one of the most challenging steps in the life of the family firm, which demands for appropriate analysis. In fact, resistance to succession, relationship founder/ successor, planning of succession, type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life. In this article, we aim to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation. Based on an online survey (N 1148) and on in-depth interviews conducted to founder/ manager/ owner (N 23), we will seek to point out major challenges faced by the Portuguese family business, as far as this matter is concerned.
... Uma estrutura bem definida ajuda a preparar a empresa para a sucessão, estabelecendo processos claros para a transferência de liderança entre gerações. Além disso, fortalece a estrutura de capital e melhora a resiliência financeira, permitindo que a empresa enfrente desafios e aproveite oportunidades de forma mais eficaz (Lansberg, 1999). ...
... Compreender esses aspectos é fundamental para otimizar a operação e garantir a continuidade e o sucesso das empresas familiares ao longo das gerações. Além disso, a presença de membros da família pode impactar a cultura organizacional, promovendo lealdade e compromisso, mas também resistência à inovação (Lansberg, 1999). A preparação para a sucessão é crucial e envolve o treinamento adequado dos sucessores para garantir uma transição suave; a falta de planejamento pode causar desafios na transferência de liderança (Sharma et al., 2003). ...
Para enfrentar esses desafios, a governança corporativa é apresentada como uma solução promissora. Ela pode melhorar a gestão, aumentar a transparência e facilitar a captação de recursos. A implementação de boas práticas de governança pode ajudar a superar a informalidade e a falta de preparo que muitas dessas empresas enfrentam, promovendo uma gestão mais eficiente e alinhada com as exigências do mercado. Visa identificar e analisar as práticas de governança corporativa em empresas familiares de médio e pequeno porte, buscando compreender como essas práticas podem contribuir para a sua sustentabilidade e crescimento. Compreender a aplicabilidade da governança corporativa e os benefícios que ela oferece é essencial para garantir que essas empresas possam se adaptar e prosperar em um mercado competitivo. O estudo é de natureza básica, visando ampliar o conhecimento e gerar novas informações sobre o tema. Exploratória, com o objetivo de aprofundar o entendimento do tema, e descritiva, tratando o assunto de forma sistemática para compreender causas e apresentar diferentes abordagens. A abordagem é qualitativa, dispensando o uso de técnicas estatísticas e focando na descrição detalhada de fenômenos complexos. A pesquisa adota procedimentos bibliográficos, baseando-se em material já publicado, como livros, artigos e teses, para fornecer suporte teórico. A coleta de dados foi realizada em três etapas: Revisão Inicial -revisão da literatura sobre o tema e tópicos relacionados para definir conceitos relevantes. Revisão Sistemática - definição das categorias de análise (palavras-chave) e seleção de materiais científicos relevantes a partir do Google Scholar. Foram incluídos artigos, dissertações e teses, e os materiais foram selecionados e analisados com base em sua relevância (Booth; Sutton; Papaioannou, 2016). Análise de Conteúdo - utilização da análise de conteúdo para organizar e examinar os dados coletados, identificando o que está sendo descrito sobre as categorias de análise (Bardin, 2011). Assim, a governança corporativa nas médias e pequenas empresas familiares tem um papel essencial na profissionalização e no sucesso do longo prazo dos negócios. Quando as inovações são inovadoras, as práticas de governança promovem decisões mais estratégicas, importantes para a sustentabilidade e ajudam a enfrentar os desafios específicos dessas empresas. Para garantir seus benefícios, é necessária sensibilidade e adaptação às dinâmicas familiares, de modo a equilibrar tradição e modernidade na gestão dos negócios.
... The strategies for effective succession planning in family business may include; Setup a succession plan (Lansberg, 1999); Ensuring cultural continuity in succession planning (Dyer, 2006;Sharma & Carney, 2012); Involve family members in the planning process (Kets de Vries, 1993); Ensuring financial stability (Chrisman et al., 2005.).it also involves engaging external advisors, such as legal, financial, and business consultants, adds objectivity to the succession planning process, document and formalise the plan (Ward, 1997) and ensure clear communication (Kets de Vries, 1993;Miller & Le Breton-Miller, 2005). Finally, the paln should include creating a governance structure (Chrisman et al., 2005;Lambrecht & Lievens, 2008;Gedajlovic et al., 2012), clarify roles and responsibilities (Chrisman et al., 2004), addressing potential conflicts (Danes & Olson, 2003) and assess and develop the next generation. ...
... Create a formal succession plan well in advance of when it is needed. This involves identifying potential successors, setting timelines, and establishing a clear process for transition (Lansberg, 1999). ...
... Aronoff et al. (2011) assert that succession involves far-reaching changes that affect every aspect of the family and FB. Lansberg (1999) views succession as a comprehensive process that interweaves multiple strands, including shifts in family relations, leadership, governance, and ownership (Brockhaus, 2004;Michel & Kammerlander, 2014). ...
... This enduring bond posits a challenge in fully separating ICs from the FB, reinforcing Sharma et al. (2001) andDe Massis et al. (2008) findings on the difficulty of this separation. The governance overlaps between IC and SR is identified as a potential conflict zone, necessitating adjustments in FB governance to accommodate new leadership roles, as suggested by Lansberg (1999). ...
This study focuses on leadership succession in family businesses, specifically examining the first-generation succession in six Slovenian manufacturing family enterprises. The authors introduce a novel perspective to studying this process by not limiting the analysis to the incumbent (IC)-successor (SR) dyad, but also integrating the family members' view in the research design. By employing a qualitative approach (i.e. a comparative case study that predominantly relies on interviews with all three studied groups) the authors collect rich data on attitudes, perceptions and expectations about succession in family businesses. The research highlights the crucial role of leadership succession in ensuring the longevity and sustainability of family businesses, as effective leadership transitions are vital for maintaining business continuity, preserving family values, and fostering the intergenerational transfer of both knowledge and entrepreneurial spirit. While ICs typically possess a range of attitudes towards succession-from proactive to reluctant-SRs generally approach the process with optimism and caution, driven by their personal needs and expectations. The attitudes of both ICs and SRs are influenced by contextual factors and psychosocial dynamics, which significantly affect the succession's initiation, leadership, and relational dynamics within the family.
... Egyes megközelítések szerint a belső mentorálás (idősebb családtag mentorál fiatalabbat), nehezen, vagy egyáltalán nem járható út, mivel gyakori a résztvevők közötti rivalizálás (Grote, 2003), mégis felbecsülhetetlen, de figyelmen kívül hagyott tevékenység a mentorálás (Lansberg, 1999). A mentorok gyakran szülői mintát töltenek be a mentorált életében, mégis előfordul, hogy nem családon, házon belül tanítják, hanem az otthonától távol tanulja meg a vállalkozás átvételéhez szüksége ismereteket és más szervezetnél sajátítja el a szükséges tapasztalatokat. ...
... A távolság megléte ugyanakkor előnyös a hitelesség, valamint az őszinte visszajelzések adásának szempontjából. Megfigyelések (Grote, 2003;Lansberg, 1999) alátámasztják, hogy családi vállalkozások esetén a mentorálás akkor a legsikeresebb, ha külső mentorálásról beszélünk és viszonylag nagy a távolság a mentor és mentorált között (1), vagy pedig abban az esetben, ha belső mentorálás esetén a családtag elég idős és pozíciójában stabil (2), azaz nem szükséges a fiatalabb családtagok riválisának tekinteni. Családi vállalkozások esetén -empírián alapuló kutatás szerint -a külső mentorálás a hatékony megoldás, mivel így elkerülhető a kényes szituáció a családon belüli mentor-mentorálti kapcsolat vonatkozásában (Boyd, Uppton, & Wircenski, 1999). ...
A családi vállalkozások mentorálását előkészítő piackutatások és tanulmányok című kutatásunk fontosabb eredményeit és következeteseit szekunder makroadatok, primer reprezentatív kérdőíves kutatás, mélyinterjúk és szekunder adatgyűjtés (szakirodalom, tanulmányok, online források) felhasználásával készítettük el. Definiáltuk a családi vállalkozásokat, azon belül azonosítottuk és jellemzőik alapján elkülönítettük generációváltó családi vállalkozásokat, melyek sokasági arányaira becslést is tettünk, így nem csak a családi vállalkozásokat tudjuk önmagukban vizsgálni, hanem közvetlenül is össze tudjuk hasonlítani a generációváltó családi vállalkozásokkal.
... Founding generation involvement not only facilitates sustainable control of the family firm but can also increase levels of family commitment (Chrisman et al. 2012). The capacity to maintain high levels of family commitment is necessarily contingent on the persevering influence of the founding generation due to their substantial investment of time, resources, and risk (Lansberg 1999). This influence may manifest as behaviour modelling, in which the founding generation transmitsthrough verbal or non-verbal communication channelstheir elevated sense of commitment to the succeeding generation (Jaskiewicz et al. 2015, Sharma andIrving 2005). ...
... This influence may manifest as behaviour modelling, in which the founding generation transmitsthrough verbal or non-verbal communication channelstheir elevated sense of commitment to the succeeding generation (Jaskiewicz et al. 2015, Sharma andIrving 2005). In situations where the founding generation is still involved and levels of commitment are high, Lansberg (1999) proposed associated high levels of business development, initiative, and risk taking. In examining intrafamily leadership succession, Hauck and Prügl (2015) find that a family member's closeness to the firm is positively associated with perceiving the succession phase as an opportunity for innovation. ...
This study empirically investigates the relationship between family governance and innovativeness in family firms, along with the moderating effects of a family’s commitment to the firm and whether members of the founding generation are still involved in firm activities. Recent work has highlighted the lack of research into the different effects of generation involvement (i.e., that of founding or succeeding generations) on family firm outcomes. Drawing from agency theory, our focus on how governance influences firm innovativeness in relation to family commitment and generation involvement aims to fill this research gap related to family firm heterogeneity. Employing a sample of 332 family firms across multiple countries and industries, we use moderated regression analysis to find that family commitment and founding family generation involvement strengthen the relationship between family governance and firm innovativeness. Additionally, when family members from the founding generation are no longer involved, firms with a strong family commitment enhance the relationship between family governance and firm innovativeness more than firms with weaker family commitment. Our findings contribute to agency theory by providing boundary conditions within a family firm context, including the extent of family commitment and if the founding generation is still involved in the family business with these moderators influencing the family governance to firm innovativeness relationship.
... Family complexity is defined in terms of large family size and involvement of different generations in a family business (Jaffe & Lane, 2004;Kets de Vries, 1993;Lansberg, 1999), bringing in many governance challenges for the family business. Due to additional family members, the ownership and management structure becomes more complex in a multigenerational business family (Lansberg, 1999). ...
... Family complexity is defined in terms of large family size and involvement of different generations in a family business (Jaffe & Lane, 2004;Kets de Vries, 1993;Lansberg, 1999), bringing in many governance challenges for the family business. Due to additional family members, the ownership and management structure becomes more complex in a multigenerational business family (Lansberg, 1999). Our review highlighted that informal family governance might suffice in the initial stages of a family business ( Martín, 2004). ...
... Many studies have focused on process factors. One group of literature on process factors examines how much succession depends on aspects such as the shared vision of predecessor and successor, the training and development of the successor, the selection process of the successor, and corporate governance (Dyck et al. 2002;Lansberg 1999;Sharma et al. 2001). Other process-focused studies suggest that decisions regarding the successor are achieved in a stepby-step process (Barach-Ganitsky 1995;Handler-Kram 1988;Lansberg 1999). ...
... One group of literature on process factors examines how much succession depends on aspects such as the shared vision of predecessor and successor, the training and development of the successor, the selection process of the successor, and corporate governance (Dyck et al. 2002;Lansberg 1999;Sharma et al. 2001). Other process-focused studies suggest that decisions regarding the successor are achieved in a stepby-step process (Barach-Ganitsky 1995;Handler-Kram 1988;Lansberg 1999). Yet another category of literature studies the relationships within the family, between family members, and the external context of the family (relationship factors). ...
Family business succession research usually focuses on the problems that make many companies fail during or as a result of succession, to focus on the individual process of decision making itself is rare. In understanding the phenomenon on the personal level of reality, and understand decision-making process of succession, the decision maker’s thinking process and aspirations have to be taken in consideration. This can lead to uncertainties and errors; decisions are predetermined as being rational human limitations border them. Therefore, aspirations and search rules are adjusted over time in response to experience. Our aim was to search for the understanding of a phenomenon: the succession decision in family businesses, where, based on the survey, we attempted to order their intuitive knowledge and aspirations to surface the aspirations, intuitive knowledge of decision makers, in order to deepen our understanding of the succession decision making phenomenon.
... Another important source of resource-related heterogeneity is the availability of human assets (Verbeke & Kano, 2012), encompassing the knowledge, skills, capabilities, attitudes, and motivation individuals acquire to undertake distinctive and innovative actions (Coleman, 1988;Dawson, 2012). Family members have a positive impact on the human capital base (Sirmon & Hitt, 2003) due to the close ties between the business and the family, leading to extensive knowledge of the business, dedicated behavior, strong motivation, and a strategic long-term outlook (Lansberg, 1999;Miller & Le Breton-Miller, 2005). Some fam-ily members are better able to contribute to the family firm's human capital base than others (Daspit et al., 2023). ...
... Family culture and management coordination are central issues in the intergenerational transmission of family businesses. Successors and executive teams usually coordinate relationships based on goal orientation, interest orientation, and rational tendencies, and mediate interpersonal conflicts through compromise, cooperation, and compliance, thus providing resources, opportunities, capabilities, and motivations for successors to facilitate intergenerational entrepreneurship [7]. This model of relational coordination derives from a socially embedded context, where motivational differences come from the embedding of automated needs, mediation patterns from the embedding of mediating factors, and relational exploitation from the embedding of relational optimization [8]. ...
Family firms face unique challenges in the process of intergenerational succession, particularly in balancing power between family members and professional managers. This study examines the succession cases of two well-known Chinese family firms, Metersbonwe and Younger, through a “small-N” comparative research method. The comparison reveals the distinct strategies of the two firms in terms of power transfer, management coordination, and the integration of family culture with modern business practices. Metersbonwe transferred control directly to the founder's daughter without fully involving professional managers, leading to reduced market adaptability and missed opportunities for innovation. In contrast, Youngor introduced professional managers while gradually transferring power to more seamlessly integrate family values with modern management. This approach helped the company remain competitive and promote continuous innovation. By analyzing these cases, this study highlights the importance of dynamic power distribution, building trust, and strategic management in the succession process. Family firms can achieve long-term sustainability by integrating family traditions with innovative professional management, ensuring both cultural continuity and business flexibility. This study offers valuable insights and practical guidance for improving succession planning, governance, and innovation in family businesses.
... Broadly, there is a general agreement that ownership structure in terms of concentration positively affects a firm's profitability as it minimizes agency problems (De Massis et al., 2013;Heugens & Van Essen, 2009). Indeed, family firms are typically characterized by a high degree of ownership concentration in the hands of family members, which serves as an emotional tie between the family and the business (Bubolz, 2001), provides security to family generations (Lansberg, 1999), and creates family legacy (LeCounte, 2022). ...
This paper aims to analyze the effect played by firm size, as a fundamental dimension of a firm’s architecture, in shaping the relationship between corporate governance and a family firm’s performance. Specifically, we explore whether and how family power, conceptualized through the three governance dimensions of family ownership, family involvement in the board, and family leadership—namely family CEO and CEO duality—affects the firm’s profitability, contingent upon its size. From a theoretical standpoint, we build on agency theory, stewardship theory, and socio-emotional wealth (SEW) theory to develop a unifying contingency framework on the role of the firm's size in determining both the magnitude and direction of the family power effects on performance. Drawing on a dataset of 548 firm-year observations of Italian-listed family firms in the 2014–2021 period, we find evidence that in smaller family firms, where the preservation of the socio-emotional endowment and family legacy is more pronounced, both the benefits and costs associated with agency and stewardship mechanisms are strengthened.
... We classify companies as family firms when the dominant family has the power to appoint the BoD and when the family uses fractional shareholdings of its members, both directly or through financial holdings, to appoint one of its members as the CEO and/or chairman (in cases of non-CEO duality) of the firm's board. In other words, we refer to the family firm as understood by Casson (1999), Grassby (2001) and Lansberg (1999), who noted that the incentive for long-term investment is expected to be particularly prevalent when a family CEO or active chairman runs the business. ...
This paper conducts an empirical analysis using two distinct indicators of voluntary disclosure, one focusing upon research and development (R&D) and the other on strategy, and, in this way, reveals that when quoted Italian firms (family and non-family) increase the intensity of their R&D activity, they also increase voluntary disclosure of information about both R&D and strategy, but the different attitude towards the two components of voluntary disclosure is demonstrated by the behaviour of the two types of firms. In particular, family firms are more inclined to increase the component of information on strategy and much less on R&D. The empirical results support the hypotheses that suggest that the importance and usefulness of providing accurate information about firm strategies is much higher in family governance than in managerial governance. Therefore, the paper makes a contribution to the topic of voluntary disclosure and the different forms of behaviour that family and non-family firms adopt in this regard.
... The main areas of interest for researchers associated with family enterprises are issues related to ownership, management of relations between the family and the company, conflicts, competitive advantage associated with a specific type of property and succession, including the preparation of successors to take over and manage a family business. Many articles on the topic of family enterprises begin with the statement that less than 30% of them are transferred to the second generation, and only 10% to the third generation (Lansberg, 1999;Sułkowski & Marjański, 2011). As part of the research, it was assumed that succession is a dynamic process taking place between two basic groups (transmitting -nestors and taking -successors), whose aim is to transfer the next generation of both management and ownership over a family business. ...
Research background: In CEE countries, especially in Poland, research on family entrepreneurship has a shorter tradition than in western countries, mainly due to the fact that most family enterprises were established after 1989 when the political system changed. Among others, the main area of interest for researchers associated with family enterprises is succession, especially areas connected with preparation of the successor, future leader of the company. Purpose of the article: The research problem is to identify the conditions for the internationalization of family firms, which are associated with the person of a future leader (successor), in particular, those related to the entrepreneurial orientation of the leader. Therefore, the main research question is which and to what extent the dimensions of the leader’s entrepreneurial orientation influence the internationalization of family firms? Research methods: The complexity of the researched topic prompted the use of advanced statistical methods. Therefore, the quantitative analysis was carried out using the SEM-PLS method, i.e. structural equation modeling using the partial least squares method. Main findings: The dimensions that influence the internationalization are the pro-activity of the leader, the tendency of the leader to risk and the competitive aggression of the leader. Pro-activity of the leader in almost 20% affects the speed/pace of the internationalization of the family firm. This effect is enhanced by the presence of external managers. Future leader tendency towards risk and competitive aggression in almost 20% of every dimension affect the international achievements of a family firm.
... Copreneurs must acknowledge that family and business are interdependent. (Ward, 2004;Lansberg, 1999). Controlling the interference of household and business obligations with each other, is important for creating balance between work and life (Marshack, 1993;Venter et al., 2009). ...
The study defines copreneurs and presents a four decadal review on copreneurial literature. The purpose is to bring conceptualization and characterization of copreneurs, on surface from its fragmented literature. A structured literature review on copreneurship research published between 1984 and 2023 is conducted. The search is made adopting indexing (Scopus, Clarivate and ABDC), digital libraries including ProQuest and EBSCO, and research articles published in journals by renowned publishers namely Elsevier, Emerald, Inderscience, Sage, Springer, Taylor & Francis and Wiley. Inclusion/exclusion criteria was defined and duplicates were eliminated. Finally, using POWER review model, the existing literature is organized under six themes namely Gender Roles, Spousal Support & Relationship Satisfaction, Work Life Balance, Business Commitment & Motivation, Leadership & Decision Making and Division of Labour & Responsibilities in the Intertwined Worlds. Using Inter- Rater Reliability, five definitions of copreneurs were framed and rated by nine experts from academics and industry. Finally, the definition with highest score and acceptable I-CVI value for simplicity & clarity is proposed. The fragmented literature on copreneurs speaks volume about the need for more impactful research on them. By using the proposed definition of copreneurs, scholars can uniformly identify the copreneurs, with future opportunities for micro-level research on copreneurs. Policy makers can utilise the findings of these research and formulate schemes, policies & programmes for betterment of copreneurs. The study intends to bridge the disciplinary gaps existing for identifying copreneurs and serve as a foundation for information sharing, regarding copreneurs and their entrepreneurial practices.
... Evidence from previous studies supports the idea that implementing a succession plan earlier correlates with a higher success rate in succession (e.g., Lansberg, 1999;Sharma et al., 2001;Sonnenfeld and Spence, 1989). The mere establishment of a succession plan has been shown to increase the success rate. ...
In the rapidly evolving Chinese economy, family-owned businesses, integral to the nation's GDP and innovation, face a significant challenge with an impending wave of intergenerational succession. With over 5.5 million such businesses, less than 20% have identified successors, and only 6% have established succession plans. This study examines intergenerational succession in these businesses, applying Handler's (1989) satisfaction and effectiveness framework, alongside Pyromalis et al. (2006)'s model. The research, conducted through interviews with second-generation owners, aims to uncover factors influencing succession satisfaction and effectiveness. Key findings highlight the unique impact of Chinese cultural values on the succession process. Unlike expectations, the reluctance of incumbents to relinquish control isn't a source of frustration for successors, reflecting the cultural emphasis on respect and deference to elders. The study broadens its scope beyond family dynamics to stakeholder relationships, acknowledging their importance in succession. This research merges theoretical and empirical analyses, adapting a Greek-tested model to the Chinese context, thus enhancing its global relevance. It provides insights into Chinese family business succession, shaped by cultural norms, and demonstrates the versatility of Western models in diverse cultural landscapes, enriching the understanding of global family business succession.
... Unclear plans, incompetent candidates, and family rivalries are all issues that family founders need to consider and deal with before handing over management and ownership controls. Another reason is that power and ownership are mostly centralized, where family founders want to control everything and have difficulties giving up their power (Lansberg, 1999). Not to mention, personality, passion, and desire also play a key role in the succession process. ...
This research paper investigates the dynamics of SME family-owned businesses within the Kuwaiti context and explores their impact on succession and continuity. With limited localized research in this area, this study aims to fill this gap by analyzing the influence of family dynamics, social norms, and emotional ownership on the sustainable development of family businesses in Kuwait. By employing a quantitative approach, a pilot investigation was conducted to gather data on various SME family-owned enterprises. Pilot research was conducted with 41 participants from various family-owned businesses in Kuwait to assess the validity and reliability of the measurement tools. The research findings offer a comprehensive insight into the operations and dynamics of family-owned enterprises in Kuwait. The descriptive analysis uncovered important demographic patterns among participants, indicating an equal distribution of genders and a notable presence of adults aged 21 to 35. This indicates the presence of a youthful and energetic group of employees engaged in family-owned businesses. A reliability analysis was conducted to ensure the dependability of the measuring instruments employed in the investigation. The results, as determined by Cronbach's alpha coefficients, demonstrated satisfactory reliability for most variables. The study employed a linear analysis using ANOVA to examine potential variations in family business dynamics based on gender and generation. Surprisingly, the results showed that there were no significant statistical variations between genders or generations when it came to emotional ownership, succession characteristics, and family membership. By examining the impact of family dynamics, social norms, and emotional ownership, this study contributes to the development of effective strategies for succession planning the growth and continuity of family businesses in Kuwait. Received: 7 April 2024 / Accepted: 2 July 2024 / Published: 5 July 2024
... Furthermore, tenures also appear to be substantially longer in family firms than in nonfamily firms (Lansberg, 1999), which leads to high levels of experience and deep task-, product-, and market-specific knowledge among employees. This attribute of family firms likely plays an important role in the innovation process, since "a firm's innovative performance is at least partially a function of the value of its human capital" (Rothaermel and Hess, 2007). ...
Purpose – Based on the resource orchestration perspective, this paper aims to examine whether family firms are more efficient in their collaboration for innovation process than non-family firms, considering different types of collaboration for innovation depending on the kind of partner.
Methodology – This study empirically develops and tests the hypotheses based on a panel data sample of 14,937 firm-year observations from 1,867 Spanish manufacturing firms over the period 2007-2014, performing a Propensity Score Matching (PSM)-based analysis.
Findings – Results reveal that family firms outperform non-family firms, despite less collaboration and innovation inputs, thereby extending the ongoing debate surrounding the innovation efficiency of family firms. Family firms obtained better results through vertical collaborations for innovation, both in terms of product and process innovations. For horizontal collaborations, family firms only outperform their non-family counterparts in process innovation. When collaborating with universities and other research centres, there are no significant differences in the innovation outcomes between the two groups.
Originality – Recent literature points out that more research is needed to know when, how and under what circumstances family firms show superior innovative efficiency. This work empirically proves that family firms outperform non-family firms in collaboration for innovation. However, not all collaboration partners help family firms to reach this superior innovative efficiency. Family firms obtained better results just through vertical and horizontal collaborations.
... Compared to the formalized routines and detailed procedures found in most non-family firms, succession in family businesses favors a more personal, direct approach focused on relationships (Cabrera-Suárez et al., 2001). It is a complex undertaking that involves multiple family members (Lansberg, 1999) and diverse stakeholders (Fox et al., 1997). Intergenerational succession is relevant not only to nations but to individual firms (Johannisson et al., 2007). ...
Family businesses dominate the business landscape around the world. Traditionally, research has concentrated on understanding the complex processes that underpin the creation, development, and survival of family businesses. To date, however, a Christian perspective on family business research has been largely overlooked. The aim of this paper is to explore the connections between a Christian perspective and the most prevalent business form worldwide. This paper contributes by reviewing relevant literature in the family business field and by suggesting future research paths.
... Notably, Ford and McLaughlin (Ford & McLaughlin, 1999) highlight the potential benefits in smaller firms, including cost-effectiveness and seamless succession planning. Proponents further suggest that nepotism fosters a positive work environment due to familiarity and shared values (Dyer, 1986;Lansberg, 1999). However, the potential for nepotism to undermine employee morale, productivity, and trust through favoritism and unfairness cannot be ignored (Chrisman et al., 1998;Gomez-Mejia et al., 2007). ...
While research exists on nepotism in Uganda, its specific prevalence and perception within family businesses remain understudied. This study aimed to bridge this gap by analyzing the perceptions of nepotism in Ugandan family-owned enterprises. A quantitative approach was employed using a modified, closed-ended questionnaire distributed online and via email. Drawn from prior literature, the questionnaire assessed perceptions of nepotism prevalence and its associated effects. Data from 400 respondents were analyzed using SPSS v26 and SmartPLS-SEM 4 software. Findings revealed that 64.3% of respondents acknowledged the existence of nepotism within their family businesses, while only 35.8% denied it. Interestingly, a majority (50.8%) viewed nepotism negatively, with only 7% favoring it. Furthermore, 63.3% of respondents reported personal experiences with nepotism, highlighting its pervasiveness. However, the frequency of nepotism practices varied, with 28.3% reporting that it never occurs, 21.5% rarely, 27.5% sometimes, 17.5% often, and 5.3% always. Notably, the high perceived prevalence (64.3%) was potentially linked to the absence of anti-nepotism policies, reported by 79.5% of respondents. The study underscores the significant challenge of mitigating nepotism in Ugandan family businesses due to its perceived normalcy and the lack of formal policies prohibiting it. To foster fairness and ensure equal opportunities for qualified individuals, family businesses in Uganda should prioritize professionalization and actively address nepotistic practices.
... Simulaciones y Juegos de Rol: La utilización de simulaciones empresariales y juegos de rol que imitan las dinámicas únicas de las empresas familiares para fomentar la comprensión profunda de las tensiones entre la familia y los negocios (Lansberg, 1999). ...
Este artículo examina la integración de la empresa familiar en la educación universitaria como medio para fomentar la creación de spin-offs, destacando la importancia de la innovación pedagógica. Mediante una revisión bibliográfica sistemática en bases de datos académicas clave, se seleccionaron estudios relevantes que exploran la relación entre la educación empresarial y la generación de spin-offs, con especial atención a las contribuciones de las empresas familiares. Los resultados indican que la incorporación de conocimientos y prácticas relacionadas con las empresas familiares en los currículos universitarios enriquece la experiencia educativa, aumenta la intención emprendedora de los estudiantes y facilita el proceso de creación de spin-offs. Se identificaron factores facilitadores, como el apoyo institucional y la gestión efectiva de la propiedad intelectual, así como desafíos, incluyendo la falta de habilidades empresariales entre los académicos y dificultades en el acceso a financiamiento. La discusión subraya la necesidad de desarrollar modelos pedagógicos innovadores que integren las peculiaridades de las empresas familiares, preparando a los estudiantes para el emprendimiento. Las conclusiones apuntan a la potencialidad de la empresa familiar como recurso educativo para promover el emprendimiento y sugieren futuras investigaciones para evaluar el impacto a largo plazo de estas prácticas pedagógicas en la creación de spin-offs universitarios. Este estudio ofrece perspectivas valiosas sobre cómo la educación superior puede adaptarse para fomentar la innovación y el emprendimiento, resaltando el papel crucial de las empresas familiares en este proceso.
... One of the most important aspects of preserving the company's tradition is the sharing of the corporate vision in combination with internal knowledge between different generations [24]. This aspect allows the business to improve its efficiency and, consequently, its productivity, leading to a reduction in training costs. ...
This study aims to make a significant contribution to the development of a model for integrating research in the wine sector, innovative knowledge, and family businesses with the traditional mode of production in the context of the introduction of modern production technologies with a view to sustainability and the improvement of services in tourism. From a methodological point of view, the research is based on the case study and, in particular, on Casa Paladin, a family business in the Italian wine sector, which bases its strategy on innovation in production processes and customer relations to obtain high product quality with the aim of meeting consumer needs. The findings underscore the crucial role of family businesses in preserving cultural and traditional elements in the wine sector, with technology and innovation serving as vital drivers for their development. Casa Paladin’s commitment to innovation in production processes and products is evident, emphasizing sustainability as a core element that impacts customer relationships and product quality. Enotourism, including tastings, festivals, and fairs, emerges as a significant aspect contributing to the promotion of the company’s history, culture, and traditions. This study posits Casa Paladin as a notable example in the Italian wine industry, offering transferable insights for other businesses. Its successful integration of culture, innovation, and sustainability contributes to a broader understanding of the contemporary role of family businesses in the Italian wine sector.
... Indeed, the desire and intention to sustain the longevity of family business across generations is a distinctive characteristic and crucial mission of many family businesses (Davis 1968;Sirmon and Hitt 2003). Prior research has found that family businesses tend to have a long-term perspective rooted in intentions to pass the business onto successive generations (Chua, Chrisman, and Sharma 1999), a stewardship orientation (Eddleston and Kellermanns 2007), longer CEO tenures (Lansberg 1999;Zellweger 2007), transgenerational goals (Gimenez-Jimenez et al. 2020;Miller and Le Breton-Miller 2005), an interest in building family legacy (Zellweger et al. 2013) and longer investment horizons (Anderson and Reeb 2003;Sirmon and Hitt 2003;Zellweger 2007). However, family firms are a complex ecosystem of practices in which emotional involvement, management, and ownership overlap and can both invigorate and encumber the professionalization of practices across generations (Brumana et al. 2015). ...
... This phrase dates back centuries, and a variant of it appears in almost every language and culture, with people often referring to it as the 'third-generation curse. ' Succession is an ongoing process of transferring management and ownership to the next generation in which transfer of ownership is the critical final step (Lansberg, 1999;Jaskiewicz, Combs and Rau, 2015;. However, in the family business, especially in the Chinese families, the succession is not merely on the successor capability; the values and culture such as Confucian values might influence the decision. ...
... Unfortunately, the third generation faces struggles in building the legacy (Tang & Hussin, 2020). Since generational change increases the complexity of a family firm (Bika et al., 2019), restructuring in family roles is required in three evolution stages: entrepreneurship shown by the first generation, family partnership formed in the second generation, and the growth of business dynasty in the third generation (Gersick et al., 1999;Lansberg, 1999). In both family business and generational change concepts, evolution serves for knowledge transfer. ...
This article investigates the transformation of tacit knowledge on enterprise development in family business, specifically on genera-tional change. Different generations exhibit different characteristics that will influence organization outcome and strategy management, this motivates the current work to form a conceptual framework, which determines the factors that trigger generation change in family enterprises. First, the case study of plastic family firm examines the firm's historical profiles that were attained from Malaysia's companies house (SSM) to assess the organization capabilities towards enterprise development. Second, this article examines the influence of strategy management during generational change upon innovation capacity. In this case study of plastic family firm in Malaysia, this firm focuses on the firms' ability to keep and advance their tacit knowledge, which prompted them to pick up new technology and skills to achieve innovativeness in their products and services. As the business is inherited by the later generation with a good education background, they tend to form new knowledge.
... Aile işletmelerinin kendine has karakteristik özelliklerinden bir diğerine değinen Lansberg (1999), uyum konusuyla ilgili, aile işletmelerinde, işletmenin başarısının aynı zamanda mülkiyet sahibi aile üyelerinin yapılarına ve uyumuna da bağlı olarak değişiklik gösterdiğini belirtmiştir. ...
... A practice theory approach supports the assumption that 'the maintenance of practices, and thus the persistence and transformation of social life, [depends on] . . . the transfer of shared embodied know-how' (Schatzki, Knorr-Cetina, and Von Savigny 2001, 12). Despite the practice-based perspective not yet being widely adopted in investigating the next generation in family business, it is worth noting that scholars have found that sharing stories, which can be perceived as a practice, has an important impact on family dreams (Lansberg 1999), transgenerational entrepreneurship (Jaskiewicz, Combs, and Rau 2015), innovation (Kammerlander et al. 2015), and business continuity (Konopaski, Jack, and Hamilton 2015). Haag (2012) investigated succession in a multigenerational family business in Sweden and revealed that family business succession is enacted through daily encounters between participants, which is more complex than simply carefully planning -rather, this is 'an ongoing practice' (186). ...
... The largest class of blockholders is that of families who are active in the family firm while the second class is the state or other public bodies (Cascino et We classify Italian listed companies as family firms when a dominant family has the power to appoint the board of directors and where this family exploits the fractional equity holding of its members, both directly and through financial holdings, to appoint one of its members as CEO and/or chairman (in cases of non-CEO duality) of the firm's board. In other words, we refer to the family firm as intended by Casson (1999), Grassby (2001), and Lansberg (1999), who noted how the incentive for long-term investment is expected to be particularly prevalent when a family CEO or active chairman runs the business. The aim of our empirical work will be to test predictions that suggest that the presence, on the one hand of independent directors (agency theory) and, on the other hand, of interlocking directors (resource dependence theory) have a significant effect on performance stability. ...
An important feature of family firms is that the controlling shareholders normally aim to maintain their investment in the long term. The theme of performance stability might be of great importance for a family firm’s survival over time. We hypothesize that family firm owner-managers are likely to choose as board members those outsiders who are able to help the firm overcome problems of performance stability over time. We then test the hypotheses through empirical analysis. Our findings suggest that the number of independents on the board of a family firm has no impact on performance stability. Instead, we find that interlocking directors can provide a significant contribution to the achieving of lower performance variability.
... Pour le successeur, comme pour le salarié, il s'agit de se « faire accepter et choisir » par le cédant, notamment lorsqu'il y a plusieurs candidats potentiels (Malone, 1989 ;Lansberg, 1999 ;Sharma et al 2003). Dans le cas des entreprises familiales, ce choix d'un successeur peut engendrer un conflit familial, qui sera plus ou moins marqué selon les rôles assignés aux autres membres de la famille dans la future organisation (Sharma, Chrisman et Chua, 2003). ...
Afin de réaliser l’état des lieux le plus large et le plus riche possible de la thématique de la transmission-reprise dans l’artisanat et d’englober les points de vue des cédants et des repreneurs, ce chapitre est structuré en trois parties :
- Dans la première partie il s’agira tout d’abord d’en évaluer les enjeux, notamment en termes de nombre d’entreprises ou d’emplois concernés mais aussi en termes de savoir faire en danger. Il s’agira également de présenter les différents types de transmission – reprise, notamment selon le type de repreneur.
- La seconde partie présentera le processus de transmission – reprise, décrira les étapes qui jalonnent ce processus et les difficultés propres à chacune de ces étapes. L’accent sera notamment mis sur l’importance de la dimension humaine.
- Enfin, la 3ième partie proposera une synthèse des principaux facteurs clés de succès de ces opérations et abordera la question du succès (ou de l’échec), en lien avec les dispositifs d’accompagnement mis en place depuis quelques années.
... We consider the professionalization of family firms related to the diffusion of the following elements: (1) formal governance mechanisms, such as board of directors, (2) formal strategic planning and control systems (budgeting, reporting, and management accounting), and (3) the involvement of non family members in boards and management, often called professional managers (Dyer, 1996). With regard to governance structures and mechanisms in family firms, they should cope with both the business and the family interests, in order to safeguard shareholder value (Lansberg, 1999). The governance role is accomplished mostly by the board of directors (Gallo and Cappuyns, 1997), which can play different roles: monitoring management on behalf of shareholders, supporting the future development of the business (Demb and Neubauer, 1992;Lorsch and MacIver, 1989;Mace, 1971), planning succession (Harris, 1989). ...
... Long-term orientation is a special aspect of family firms that help them to accomplish financial and non-financial goals (Broccardo, Truant, & Zicari, 2019;Gómez-Mejía, Haynes, Núñez-Nickel, Jacobson, & Moyano-Fuentes, 2007). To achieve financial objectives, the long-term orientation of family firms is particularly reflected in longer tenures of chief executive officers (Lansberg, 1999), usage of patient capital (Sirmon & Hitt, 2003), and longer time horizon for financial gains (Shahzad, Rehman, Nawaz, & Nawab, 2018;Zellweger, 2007). Beyond financial gains, family firms have non-financial objectives to preserve socio-emotional wealth (Gómez-Mejía et al., 2007;Laguir, Laguir, & Elbaz, 2016), and passing on the business to successive generations (Miller, Le Breton-Miller, & Scholnick, 2008). ...
Prior research suggests that undertaking corporate social responsibility (CSR) activities affect firm value. We extend this line of research by considering CSR activities over a longer period (a consistent CSR behavior) and examine the impact of CSR permanency on firm value. Using a crosscountry sample of 600 top-listed firms from four leading emerging economies, Brazil, Russia, India, and China (BRIC) over the period 2010-2018, we find that CSR permanency positively impacts firm value after controlling for various firm and country characteristics. This effect is observed more pronounced for family-owned firms. Additional analysis reveals that permanent CSR activities in both social and environmental dimensions positively influence firm value, however, CSR permanent activities in the social dimension exert a larger impact on firm value. Our results make important contributions to theory and practice.
... Existing literature emphasises the urgency in the preparation and qualification of the successor (Costa, 2017;Costa e Rio, 2011;Lansberg, 1999;Gersick et al. 1997;Morris, Williams, Nel, 1996;Seymour, 1993) and in the professionalisation of the family businesses by hiring non-family managers and qualifying human resources. Nonetheless, the least preparation or lack of preparation of the successor remains a common feature to the majority of the family businesses, being residual the number of those that prepare for the transfer of leadership/ownership of the business. ...
Family-oriented companies are a predominant type of company in the context of the Portuguese private business fabric. At the heart of this business typology, two structural aspects of the life of individuals coexist: work (company) and family, with multiple challenges experienced by those who create, manage and coordinate them: their entrepreneurs. Recent studies reveal that 50% of family businesses do not reach the second generation and only 20% reach the third generation (AEP, 2011). Business succession planning represents one of the main management challenges experienced in this segment of companies. This communication presents a reflection on family entrepreneurship in Portugal, offering a portrait of the family businesses in the North Region of Portugal and focusing on main management challenges, such as business succession and management professionalization. For this purpose, the main results from the research project "Roadmap for Portuguese family businesses" (2016-2018), financed by NORTE 2020 / FEDER will be presented. The aims of this project were to contribute to a better knowledge and institutional visibility of this segment of companies, as well as to assess the impact of companies Northern Region in the local, national and international economy. The data presented is the result of an eclectic methodological design that has combined a quantitative-extensive approach, based on the construction of a database with all family companies formally registered in the North of Portugal and posteriorly the application of an online survey (LimeSurvey platform) to the family entities collected in previous step, in order to better characterise the profiles of family companies, and also a qualitative-intensive approach based on the conduction of a set of 23 in-depth interviews to family managers/ owners, bearing in mind the diversity of this business typology, namely in terms of basic variables such as the sector of activity, size, year of foundation, founder's gender.
... Por lo tanto, tener cuidado en la forma como se transfiere el conocimiento entre generaciones es imprescindible (Woodfield y Husted, 2017). En la misma línea de pensamiento, Lansberg (1999) sugiere que la rivalidad familiar reduce la disposición para la transferencia de experiencia y conocimiento entre generaciones. ...
La obra determina los principales retos gerenciales que tienen las mipymes familiares en la transición generacional, como un elemento de información decisiva para los accionistas que desean extender en el tiempo el legado empresarial. Casos de estudio aplicados en Colombia.
Este texto cuenta con un capítulo inicial sobre la revisión de literatura sobre los desafíos en la transición generacional, 10 casos de estudio, y un capítulo final sobre las diferencias y similitudes en el foco de investigación en las mipymes. Los casos contribuirán a la gerencia de las empresas familiares a tener elementos informativos, ejemplos, lecciones aprendidas y conclusiones, de tal manera que sea útil para enfrentar a futuro situaciones similares.
... Algunos estudios han demostrado que en la empresa familiar el desempeño se beneficia por la participación de los empleados no familiares, ya sea por su nivel de profesionalización y orientación a la eficiencia y competitividad, y a que mejoran la calidad de la toma de decisiones y ayudan a enfrentar el ambiente competitivo de la organización y de esa forma mejora su desempeño (Pittino et al., 2018;Dekker et al., 2015;Dawson, 2011;Stewart y Hitt, 2012); sin embargo, la contratación de empleados no familiares, en especial en puestos de toma de decisiones, es uno de los puntos de mayor vulnerabilidad de las empresas familiares y utilizan a sus propios miembros aunque no sean los más calificados (Karra et al., 2006;Schulze et al., 2003). Craig et al. (2008: 364) demuestran que "el desarrollo de una identidad basada en la marca familiar contribuye positivamente al desempeño de la EF en sus dimensiones de crecimiento y rentabilidad", pues para la empresa familiar su identidad y reputación se convierten en su legado a las próximas generaciones al promover su nombre e identidad para construir una ventaja competitiva que después influye en las decisiones de crecimiento y expectativas de desempeño (Lansberg, 1999). Por otro lado, si no se aprovecha esa oportunidad, no sería posible explotar en su totalidad esas ventajas arraigadas en sus características distintivas e inimitables que pueden influir en los resultados de su desempeño (Craig et al., 2008). ...
Se analiza la relación entre identidad y compromiso organizacional en las empresas familiares medianas con el fin de contribuir al campo de conocimiento de la empresa familiar y gestión de la identidad organizacional. El método es cualitativo con la estrategia de estudio de caso múltiple. Se eligieron tres empresas familiares medianas. De acuerdo con los hallazgos, los empleados familiares tienen mayor identidad organizacional que los empleados no familiares y el compromiso organizacional está directamente relacionado con la identidad. Además, la generación familiar propietaria influye en ambas variables, siendo en la segunda generación donde se encuentran mayores niveles de identidad y compromiso organizacional en sus tres dimensiones, en empleados no familiares. Se sugieren líneas de investigación que comparen empresas familiares con no familiares, las cuales contemplen también empresas pequeñas.
... Disamping itu, manajer keluarga adalah orang-orang yang ideal untuk memberikan saran kepada para manajer non keluarga di bawah kendalinya untuk mencegah kesalahan terjadi karena kepentingan bersama dan sikap saling mempercayai satu sama lain. Selain itu identitas mereka sebagai anggota keluarga juga membantu dalam menghadapi konsekuensi yang merugikan dalam kehidupan karir seumur hidup mereka (Lansberg, 1999). ...
Buku ini merupakan konversi dari disertasi penulis yang merupakan hasil penelitian panjang antara tahun 2014 hingga tahun 2017. Banyak rekan-rekan cendekiawan bidang Family Business melalui interaksi via Linkedin yang telah membaca ringkasan disertasi pada Journal of Economic Cooperation and Development 40 (2) (2019), 25-58 menyarankan versi lengkap dari “The Model of Capability Soft Governance in Family Business: Empirical Study in Bus Transportation Industry in Jakarta, Indonesia” dapat dinikmati secara lebih luas untuk berbagai kalangan sebaiknya dibuat dalam bentuk buku referensi sehingga lebih ringan namun tetap menyajikan detailnya.
Bagaimanana buku ini digunakan. Sistematika buku disajikan dalam enam bab dengan pertimbangan tetap menjadi buku referensi dengan karakter ilmiah yang menonjol, namun dengan judul dan sub-judul dengan pilihan diksi lebih popular dan luwes bagi kalangan umum non akademisi termasuk bagi para pemilik dan pendidi perusahaan keluarga. Bagi kalangan akademisi sistematika dan kontek keilmiahan masih sangat kuat, sehingga layak digunakan untuk digunkan untuk mendukung mata kuliah Metodologi Penelitian dan Publikasi. Selebihnya sangat selaras untuk mendukung mata kuliah Pengantar Bisnis, Manajemen Sumber Daya Manusia, Perilaku Organisasi, Manajemen Perubahan, Kewirausahaan dan Manajemen Kinerja.
Bagian bagian penting dari buku ini meliputi bukti – bukti performa dan kontribusi (share) perusahaan keluarga (family firm) terhadap product domestic bruto dan product national bruto sesuai dengan lokus operasi perusahaan maupun kepemilikan perusahaan keluarga tersebut. Perjumpaan konten ini termaktub pada Bab I.
Selanjutnya pada Bab II akan disajikan pemetaan dialektika para ilmuan bisnis keluarga yang melahirkan banyak konsep manajemen khas bisnis keluarga, tipe perusahaan keluarga dan operasional serta suksesi pada perusahaan keluarga. Pada bab ini juga akan dijelaskan bukti – bukti empiris dari berbagai temuan hasil riset terdahulu terkait dengan tata kelola perusahaan keluarga. Disisi memang banyak dipertukarkan antara perusahaan keluarga, family business dan family firm, namun demikian yang dimaksud tetap perusahaan milik keluarga.
Bagian Bab III, akan menjelaskan metodologi dan pendekatan riset yang dilakukan, pengujian untuk menemukan pola hubungan berbagai variabel dan konsep berserta penafsirannya.
Selanjutnya pada Bab IV disajikan hasil olah data secara deskriptif, pengujian model dan pengujian hubungan serta pengaruh antar variabel. Hal ini penting disajikan agar dapar mendeskripsikan serta memperkuat validates dan reliabilitas model serta bagaimana model bekerja dan mampu memperdiksi bagaimna kinerja manajerial dari perusahaan keluarga.
Pendalaman atas temuan pengujian pada Bab IV dilanjutkan dengan penyajian Bab V berupa konfirmasi dari berbagai temuan penelitian terdahulu yang relevan. Pada bagian ini juga dideskripsikan bukti triangulasi melalui penelusuran dokumen yang relevan dan wawancara kepada informan terpilih yang memiliki pengetahuan memadai tentang operasionalisasi perusahaan, kepemimpinan manajer pada perusahaan serta ukuran-ukuran kinerja manajerial yang ditetapkan pada perusahaan.
Mengakhiri buku ini akan disajikan pada Bab VI berupa simpulan dan implikasi teoritis untuk pengembangan Ilmu Manajemen dan Family Firm. Selebihnya implikasi manajerial yang bermanfaat untuk meningkatkan kinerja manajerial dan suksesi kepada generasi yang lebih muda sebagai putra mahkota, yang diproyeksikan meneruskan pengelolaan dan kepemilikan perusahaan keluarga.
This study investigates the multifaceted risks confronting family-owned businesses in India, employing a mixed-methods approach that integrates qualitative thematic analysis with quantitative statistical techniques. The research utilizes secondary data from 200 National Stock Exchange (NSE)-listed family-owned companies, providing a comprehensive overview of the challenges these enterprises face. Qualitative analyses, conducted using NVivo and ATLAS.ti, identified ten critical risk dimensions: financial, governance, market, succession, technology, economic, regulatory, human resource, innovation, and reputation. Financial risks, including capital constraints and limited access to external funding, emerged as significant themes, highlighting their impact on business sustainability. Governance risks, characterized by ineffective decision-making and lack of professional management, were also prominent, underscoring the need for robust governance frameworks. Quantitative analyses revealed strong negative correlations between these risk factors and key performance indicators. For instance, financial constraints showed a significant negative correlation with business performance (r = -0.56, p < 0.05), while governance issues correlated negatively with profitability (r = -0.62, p < 0.01). Regression analysis further confirmed these relationships, indicating that board independence (β = 0.412, p < 0.001) and stakeholder engagement (β = 0.478, p < 0.001) are significant positive predictors of ESG performance, whereas family ownership negatively impacts ESG scores (β = -0.361, p < 0.001). These findings align with existing literature, emphasizing the importance of professionalizing governance structures and diversifying financial resources to enhance the resilience of family-owned businesses. The study contributes to the understanding of the complex interplay between various risk dimensions and business performance, offering insights that can inform the development of structured risk management strategies. By addressing these challenges, family-owned businesses in India can improve their long-term viability and continue to play a pivotal role in the country's economic development
Family-owned businesses (FOBs) play a vital role in the economic landscapes of BRICS nations-Brazil, Russia, India, China, and South Africa. These businesses not only contribute significantly to GDP and employment but also act as drivers of innovation and long-term sustainability. However, the performance and governance of FOBs in BRICS are deeply influenced by cultural factors unique to each country, as well as by varying corporate governance structures. This paper explores how cultural values such as collectivism, hierarchy, and familial loyalty shape decision-making, succession planning, and stakeholder relationships in FOBs within BRICS economies. It highlights how traditions and societal norms can either bolster or hinder growth, particularly in competitive global markets. Additionally, the study examines the role of corporate governance frameworks in ensuring transparency, accountability, and adaptability in family-owned enterprises. While FOBs in BRICS face challenges such as nepotism, resistance to change, and generational conflicts, they also exhibit resilience through strong family ties and community-oriented strategies. The research underscores the importance of integrating traditional values with modern governance practices to ensure the longevity and global competitiveness of these businesses. Understanding these dynamics can offer valuable insights for policymakers, investors, and academics aiming to foster the sustainable growth of family-owned businesses in emerging economies.
Purpose
This study aims to investigate the factors influencing successful and unsuccessful succession in Pakistani family-owned businesses (FOBs), with a focus on the interplay between formal governance practices and socio-cultural dynamics. By examining key elements in succession planning and leadership transition, the study offers insights tailored to the unique challenges faced by FOBs in emerging markets such as Pakistan.
Design/methodology/approach
Employing a multiple case study approach, this research examines generational transitions across ten Pakistani FOBs. Data were collected through semi-structured interviews with key family members involved in the succession process, with thematic analysis applied to identify patterns.
Findings
The findings indicate that proactive succession planning, formal governance mechanisms and thorough successor training are critical for achieving smooth leadership transitions in Pakistani FOBs. Companies that implement structured governance and clear succession processes experience fewer internal conflicts and greater business continuity. However, socio-cultural factors, such as seniority-based preferences and gender biases, present significant obstacles, often complicating the transition process. Additional challenges include resistance to modernized strategies, and sibling rivalry strongly influence succession outcomes in the Pakistani context and highlight the need for culturally sensitive governance approaches to improve business continuity.
Practical implications
Practical implications for family-owned businesses include early succession planning, structured governance mechanisms and comprehensive training for successors. Establishing family councils can minimize conflicts and align family goals. Addressing cultural biases, such as gender and seniority preferences, encourages merit-based succession, ensuring smoother transitions. These strategies enhance continuity, reduce disruptions and support sustained growth, particularly in culturally influenced contexts like Pakistani family-owned businesses.
Originality/value
By examining succession dynamics within the context of an emerging economy such as Pakistan, this study provides valuable insights into the unique cultural and organizational challenges facing FOBs. The findings enrich the understanding of succession in family enterprises and extend current knowledge on the influence of socio-cultural factors in business continuity.
Family-owned businesses are very important in the world economy. These firms are helping to shape and define economies the world over. Between 50-60% of the workforce in industrialized nations is employed in family-owned businesses. However, in the 21st century, less of family-owned businesses are being formed. This study, therefore, sought to investigate effect of succession planning on sustainability of family-owned enterprises in Nairobi metropolitan, Kenya. The study specifically assessed the influence of identification of successors, successors' capacity development, and leadership commitment on sustainability of family-owned businesses. The study adopted a mixed research methodology where both qualitative and quantitative data were used. The target population comprised 313 family-owned businesses which are registered by the Association of Family Business Enterprises (AFBE). Stratified random sampling was used to select 176 respondents with help of Yamane formula. Data was analyzed using descriptive and inferential statistics. Regression results indicated that a unit increase in the identification of successors resulted in a considerable rise in the sustainability of family-owned firms by 0.197. A unit increase in the capability of the successors would result in a considerable rise in the sustainability of family-owned firms by 0.266. A unit increase in leadership commitment resulted in a substantial improvement in the sustainability of family-owned firms by 0.332. The study concluded that family members are engaged in identifying a successor; successors' training provided them with the necessary entrepreneurial and financial abilities to take the company to the next stage of growth, and leadership commitment has a key impact in improving the sustainability of family-owned enterprises was indicated by this study. The study recommends that family companies should utilize independent boards and experts to help them make judgments on who will succeed them throughout the selection process of a successor. Future company owners should provide their employees with enough training and development options, such as a mentorship program and on-the-the-job training. Succession plan should be time-bound and updated to be realistic and relevant to the current situations in business life so that it becomes an invaluable business tool to guide transgenerational business transition while ensuring sustainability.
Family businesses, with their unique structure and culture, can play a pivotal role in simultaneously building and maintaining both economic activity and social capital. According to Janusz Gierszewski's concept, social security is largely dependent on the social capital formed through social values and norms. In family businesses, it is this social capital and family values that are the source of competitive advantage, shaping their identity and ensuring the multi-generational endurance of the family business. The distinctiveness of family businesses is also significant from a research perspective, as the established functioning patterns and structures of SMEs do not align with those of family businesses, necessitating a deeper exploration of the dynamics and obstacles to the development of family businesses. The aim of the article was to identify and systematize the problems of family businesses in relation to their organizational, legal-institutional, financial, and psychological security, and to attempt to answer whether the identified problems are merely challenges that the company can overcome independently, or if they represent a serious barrier to the development of family businesses, insurmountable without external assistance. To answer these questions, we conducted qualitative and quantitative research among family businesses in the Pomeranian Voivodeship participating in the 'Succession with Success' project. The research findings confirmed the long-term approach of family businesses to conducting business and the specificity of their decision-making processes. The research also revealed the particular role of the leader in the enterprise development process and the importance of social capital in shaping its success. It also identified certain management gaps in family businesses that could hinder their further development and economic security. These include a casual approach to procedures, a dominant management model based on interpersonal relationships, and a lack of knowledge about modern management methods. The research results indicate the need for multidimensional support for family businesses in management and the need for in-depth research in the field of social and economic security in the local environment. The practical value of the article lies in formulating recommendations for shaping appropriate tools to support the development and economic security of family businesses, which should be addressed to entities creating the local and institutional environment of enterprises, especially local government bodies.
Existing research on family firms emphasizes the importance of entrepreneurship across generations but leaves the role of entrepreneurial transmissions between predecessors and successors relatively unexplore . Building on the concept of entrepreneurial legacy, we ask how interactions of entrepreneurial mindsets and resources influence organizational ambidexterity in family firms. The study’s central argument (and metaphor) is that organizational ambidexterity thrives in multigenerational family firms if successors’ awareness of the family’s entrepreneurial legacy (the right seed) interacts with predecessors’ provision of entrepreneurial resources during succession (the fertile soil), also known as entrepreneurial bridging. We analyze a unique sample of successors from 296 multigenerational family firms in the agricultural sector. Our results point to the relevance of entrepreneurial resources in predecessor-successor collaborations to unlock the family firm’s ability to balance entrepreneurial exploration and exploitation.
This chapter explores the complex relationship between family dynamics and entrepreneurship, particularly in the context of evolving societal norms and the COVID-19 pandemic. It critically examines the role of parental influence, family support, and the family environment in shaping entrepreneurial intentions and self-efficacy. It also discusses the challenges and strategies that entrepreneurs face due to family dynamics, drawing on real-world case studies. The chapter provides a comprehensive theoretical framework that integrates various perspectives on how family interactions influence entrepreneurial decisions. It also highlights the practical implications of the findings and suggests areas for future research.
This chapter addresses the issue of family businesses’ need for transformation from a systemic view. A systemic perspective is utilized to analyze the most common issues inherent in family businesses. The author illustrates key transformative challenges that most family businesses face and must resolve if the core systems are going to meet developmental and systemic challenges. Suggestions are offered for several kinds of interventions that help sustain the family, the family business, and its wealth over generations. The author utilizes cases that show how the issues impact the different family business systems with successes and failures. The author also suggests consultative competencies that are needed by the consultant wishing to assist the transformation process.KeywordsFamily businessTransformationFamily business governanceConflict resolution in family businessSuccession planningSystems approachEnmeshment in family business systemsFamily fracturingFamily protocols and constitutionFamily business consultant competencies
First, this introductory section demonstrates the necessity of a comparative perspective on succession.
In this book, we ask whether and how succession practices in European family businesses vary. The book is based on the proceedings of the interdisciplinary and practice-oricnted workshop 'Generational transition in family businesses', which took place at the University of Zurich from June 21-23, 2009. We asked representatives of comparative research from anthropology, economics, law, psychology and sociology to reflect on the institutional background of generational transition and to develop explorative ideas and hypotheses on succession patterns across Europe. Additionally, business and legal practitioners were invited to illustrate the concrete practical negotiations during the generational transfer process for the exemplary cases of ltaly, Switzerland and Germany. The contributors were asked to thoroughly revise their chapters in the light of the discussions at the workshop. The book is targeted not only towards the field of family business research proper, but also makes the case for the relevance of studying gcncrational succession for the adjoining disciplincs. Moreover, it invites interested practitioners in law, consulting and management to learn about
cultural particularities of the succession process.
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