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Family Business Succession: The Final Test of Greatness
Abstract
Preparing to pass the family business on to the next generation is perhaps the roughest and most critical challenge facing business owners. Yet most businesses don't realize that succession is a lifelong process of planning and management. Leaders will learn how to create a succession plan; how to develop opportunities for succession candidates; how to build consensus with the family and leaders on succession plans; and when and how to let go of their own role in the business.
... Intergenerational internal family succession may be de ned as a set of activities and events that lead to the transfer of leadership from one family member to another (Sharma et al., 2001). It is the transfer of leadership from incumbent to successor (Aronoff et al., 2011). ...
... Many incumbents prefer to live in doubt despite the bene ts and advantages that the planning and implementing of succession bring. Many of them avoid, dodge or even resist planning, because it entails premature reecting on the expiration of one's life (Aronoff et al., 2011). Early succession planning can increase the probability of its success. ...
... The gap among the CSs is large. The interval is completely consistent with the interval de ned by Aronoff et al. (2011) of 5-15 years. ...
... The most frequently aspect taken into account in these models is the degree to which family members are involved in the firm's governance and management (Tagiuri and Davis, 1996;Gersick et al., 1997;Lane et al., 2006;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Dyer, 1986;Gallo and Amat 2003). Other aspects which have also been frequently considered in the models of analysis studied are the following: the developmental stage, or the generation in charge of the business (Amat, 2002;Gersick et al., 1997), the degree to which the firm's governing bodies are structured (Tagiuri and Davis, 1996), and the firm's size or level of development (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). The first of these aspects concerns the characteristics of the business family, as indeed its influence on firms' strategic behavior is related to the differentiated and entrepreneurial character of the founding generation (Amat, 2002;Gersick et al., 1997), the consolidation challenges usually faced by the second generation (Tagiuri and Davis, 1996), or the potential divergences of opinion regarding business objectives between the different family branches interacting after the third generation (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). ...
... Other aspects which have also been frequently considered in the models of analysis studied are the following: the developmental stage, or the generation in charge of the business (Amat, 2002;Gersick et al., 1997), the degree to which the firm's governing bodies are structured (Tagiuri and Davis, 1996), and the firm's size or level of development (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). The first of these aspects concerns the characteristics of the business family, as indeed its influence on firms' strategic behavior is related to the differentiated and entrepreneurial character of the founding generation (Amat, 2002;Gersick et al., 1997), the consolidation challenges usually faced by the second generation (Tagiuri and Davis, 1996), or the potential divergences of opinion regarding business objectives between the different family branches interacting after the third generation (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). ...
... Similarly, the greater or lesser degree to which firms' governing bodies are structured has generated different approaches and frameworks for reflecting on decision-making, which also provide us with a basis for distinguishing between business decisions and family ones (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). However, in addition to the degree of governance structure, it should also be stressed that the extent to which owner families are involved in the governing bodies has an important role to play. ...
... The most frequently aspect taken into account in these models is the degree to which family members are involved in the firm's governance and management (Tagiuri and Davis, 1996;Gersick et al., 1997;Lane et al., 2006;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Dyer, 1986;Gallo and Amat 2003). Other aspects which have also been frequently considered in the models of analysis studied are the following: the developmental stage, or the generation in charge of the business (Amat, 2002;Gersick et al., 1997), the degree to which the firm's governing bodies are structured (Tagiuri and Davis, 1996), and the firm's size or level of development (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). The first of these aspects concerns the characteristics of the business family, as indeed its influence on firms' strategic behavior is related to the differentiated and entrepreneurial character of the founding generation (Amat, 2002;Gersick et al., 1997), the consolidation challenges usually faced by the second generation (Tagiuri and Davis, 1996), or the potential divergences of opinion regarding business objectives between the different family branches interacting after the third generation (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). ...
... Other aspects which have also been frequently considered in the models of analysis studied are the following: the developmental stage, or the generation in charge of the business (Amat, 2002;Gersick et al., 1997), the degree to which the firm's governing bodies are structured (Tagiuri and Davis, 1996), and the firm's size or level of development (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). The first of these aspects concerns the characteristics of the business family, as indeed its influence on firms' strategic behavior is related to the differentiated and entrepreneurial character of the founding generation (Amat, 2002;Gersick et al., 1997), the consolidation challenges usually faced by the second generation (Tagiuri and Davis, 1996), or the potential divergences of opinion regarding business objectives between the different family branches interacting after the third generation (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). ...
... Similarly, the greater or lesser degree to which firms' governing bodies are structured has generated different approaches and frameworks for reflecting on decision-making, which also provide us with a basis for distinguishing between business decisions and family ones (Ward and Aronoff, 1991;Melin and Nordqvist, 2000;Perkins, 1992;Gallo, 1997;Gallo and Amat 2003). However, in addition to the degree of governance structure, it should also be stressed that the extent to which owner families are involved in the governing bodies has an important role to play. ...
This research explores in greater depth the importance of considering the heterogeneity between family businesses so as to better understand the differences in their strategic behavior, performance and business results. With this, we attempt to contribute to the theories on the relationship between corporate governance and strategic management in the field of family business research. Our study identifies the different configurations that may be adopted in the ownership structures and the management and governance bodies of family firms, analyzing how these configurations are related to the firm’s strategic outcomes. Using a sample of 111 family firms, we perform a cluster analysis that allows us to determine distinct types of family businesses based on a set of dimensions regarding the characteristics of their governance bodies, both in business and in the family, as well as their ownership structure and degree of family involvement in management tasks. We then link the different types found with the profiles of managers, the repertoire of strategies used by these companies, and the differences in obtaining results in recent years.
... Scholars suggest that there must be the concurrence of two elements for succession to be planned and successfully executed; successors who must have the intention to take over (Sharma et al., 2003;Sharma et al., 2001), and incumbents who must have the intention to transfer the leadership of the business to the next generation (De Massis et al., 2008). Most owner-managers of family-owned firms have a hesitant attitude towards succession notwithstanding the huge research emphasizing the significance of successful succession (Mitchell, 2020;Aronoff et al., 2011). ...
... The owner-manager initiates and influences the succession process (Kowo et al., 2021) even though the potential successor can as well initiate the process by exerting pressure on the founder to relinquish that authority (Esuh et al., 2011;Williams et al., 2013;Ye et al., 2014). Factors such as the need for control, desire for purpose and impact, issues related to legacy, mortality, and sense of responsibility; difficulty leaving everyday operations; financial concerns in retirement; and family change dynamics have been identified by researchers as influencing owner-managers of family firms in their attitudes towards succession planning (Mitchell, 2020;Aronoff et al., 2011;Venter et al., 2006;Sharma et al., 2003). Boyd et al. (2014) suggest that the owner-managers' intentions and perceptions towards divergent in many respects to succession planning consents that the lack of succession planning is a leading cause of family firms mortality (Villegas et al., 2019). ...
This article aims to review the literature on succession planning for family-owned construction firms (FOCFs). The purpose is to unearth and contextualize the perceptions of owner-managers toward undertaking succession planning in FOCFs.
Multiple sources of data were used to assess the perception of owner-managers of FOCFs to succession planning. The survey method involving quantitative methodology via questionnaire administration within a cross-sectional design was employed. The sample consisted of 142 respondents selected by purposive and snowball sampling. The unit of analysis was FOCFs in Ghana. The obtained information was processed employing selected descriptive statistical methods to obtain findings and conclusions drawn herein. Key findings of the study include the fact that the incumbent has a significant influence on the succession planning process. Positive perceptions of owner-managers have a significant effect on both the incumbent and the succession planning process. However, lack of trust was found to have a significant negative effect on succession planning. The ranking revealed the top three perceptions of owner-managers to include; owner-managers are afraid of the effects of succession, the size of the family, and have plans to undertake succession at old age. The study recommends a future study into the perceptions of successors towards succession planning because the perceptions of incumbents and successors may differ significantly and a willing successor is a recipe for effective succession planning. The findings are important for practice because successions are initiated, controlled, and driven by the owner-managers. Understanding the perception of owner-managers towards succession planning enables policymakers and the government to design initiatives to encourage and help shape the perceptions of owner-managers of family-owned construction firms.
This study helps to advance understanding of the role of perception that determines incumbents’ attitudes toward succession planning.
... This requires a clarification of roles and responsibilities among stakeholders to ensure that siblings can accommodate one another and minimize instances of rivalry and political infighting, which are pervasive in family firms (Phikiso, 2017). The findings of Aronoff et al. (2011) revealed that maintaining good relationships within the family was believed to be fundamental for family businesses and many members of families sometimes accord this consideration greater importance than the profitability of their businesses. Helin & Jabri (2016) collaborate on this assertion when they established that a positive relationship between members of the family has a significant influence on the succession process. ...
... The incumbent initiates and influences the succession process(Kowo et al., 2021). However, the need for control, desire for purpose and impact, issues related to legacy, mortality, and sense of responsibility; difficulty leaving everyday operations; financial concerns in retirement; and family change dynamics are influencers (perceptions) of ownermanagers attitudes to succession planning(Mitchell, 2020;Aronoff et al., 2011;Venter et al., 2006; Sharma et al., 2003).Boyd et al. (2014) suggest that the founders' intentions and perceptions towards successions predict the nature of transitions they would implement for the family business and this is influenced by the understanding of acceptable norms within the family and social circle. For a succession to be planned the incumbents must have the intention to transfer the leadership of the business to the next generation(De Massis et al., 2008), and the successors must have the intention to take over(Sharma et al., 2003;Sharma et al., 2001). ...
Purpose-This article aims to review the literature on succession planning for family-owned construction firms. The purpose is to unearth and contextualize the succession planning information within the construction industry, particularly for family-owned construction firms. Design/methodology/approach-A systematic and meticulous literature search of family-business magazines, and trustworthy journal databases was carried out after a brainstorming session to determine what relevant information would be unearthed for the study. This resulted in search criteria of several terms related to the topic (‗succession', ‗succession planning', ‗transition planning', ‗family firms', ‗family-owned construction firms', ‗family-owned business', ‗agency cost theory', resource-based view', and ‗theory of planned behavior') and using connectors AND and OR to link the descriptors. The retrieval process resulted in over 500 articles and the filtering process cleaned the data to over 100 which literature resulted in a conceptual framework being proposed. Findings-Key findings of the study include the significance of succession planning in family-owned construction firms, drivers, barriers, application of the agency cost, resource-based view and planned behavior theories to underpin succession planning, and the conceptual framework in which family-owned construction firms, in particular, can rely on when undertaking succession planning. Limitations/implications-The weakness of this paper is the lack of theoretical development and being a literature review does not concern itself also with the causal relationship of the constructs in the framework. The findings highlight key areas for future research and help to contextualize the topic for any potential new developments in succession planning for family-owned construction firms. Practical implications-Family-owned construction firms are getting extinct by the day and the statistics are startling mainly due to a lack of succession planning. Thus, firms especially family-owned construction firms are admonished to pay attention and employ adequate resources for succession planning to promote their long-term survival and prosperity. Originality/value-This paper gives researchers and industry practitioners insights into the succession planning process. It paves the way for an exploration of the applicability of succession planning processes as applied in other sectors to be tried in the construction sector. The value this paper comes with is that it employs agency theory, resource-based view theory, and theory of planned behavior to reinforce the study whilst developing/ proposing a conceptual framework based on the available information to guide family-owned construction firms in Ghana to undertake succession planning. KEYWORDS-Succession, Succession planning, family firm, family-owned construction firm, family-owned business, agency cost, resource-based view, and theory of planned behavior.
... Determining the company's value and performing due diligence, along with ensuring the successor's access to financial documents, can decrease information asymmetries (Wasserman, 2003;Wennberg et al., 2011). In addition, contracts with guidelines for behavior and the decision-making of incumbents and successors can foster information exchange (Aronoff et al., 2003). ...
... Mutual adherence to arrangements. (Aronoff et al., 2003) "To safeguard the business, the siblings and cousins need education on effective ownership, business governance and teamwork." ...
The often long-lasting process of intrafamily business succession involves contracts for management and ownership transfer that unfold in a complex series of stages. The older and larger a family business, the more heterogeneous the involved family members’ interactions and interests can become. These differences become obvious in the succession process. Also, in entrepreneurial families, information is not easy to obtain and is neither perfect nor unlimited, for example, with regard to expectations regarding the duration or the type of business succession. Information asymmetries can arise. This article investigates the drivers of information asymmetries and provides insight into the current research by investigating information asymmetries and their impact during different phases of intrafamily business succession. Data from 215 German firms reveal the occurrence of specific information asymmetries during different phases of intrafamily business succession.
JEL CLASSIFICATION M1; M59; D82; L2
... Os membros da família também podem ser empregados. O funcionário também revelam preocupações com o capital social (reputação) e o capital emocional (oportunidades de carreira, gratificações e medidas de desempenho justas) (Aronoff, McClure, & Ward, 2011). Nas empresas que estão no mercado de capitais, a gestão é compartilhada entre CEOs familiares e CEOs profissionais, gerando maior descentralização, autonomia e decisões alinhadas aos próprios interesses. ...
... A estrutura de propriedade está diretamente relacionada com o percentual de votos que o acionista controlador possui, sendo que, para definir as empresas familiares, a família ou membros da família devem possuir, no mínimo, 10% das ações ordinárias com direito a voto (La Porta et al., 1999). A propriedade pode incluir membros da família, investidores e/ou proprietáriosque está preocupado com o capital financeiro (o desempenho dos negócios e dividendos) (Aronoff et al., 2011). ...
Este estudo mensura a influência da propriedade na estrutura de capital das empresas familiares, comparando com as empresas não familiares, listadas na B3. As relações existentes entre estas variáveis são alvo de discussões e não há na literatura um consenso quanto à influência exercida pela gestão familiar na estrutura de capital. Para tanto, este estudo caracteriza-se como descritivo com abordagem quantitativa. Os dados foram resgatados da base de dados Economatica e a amostra consistiu de 269 empresas entre as familiares e não familiares. A revisão de literatura gerou 6 hipóteses que observaram as dimensões de propriedade, endividamento e custo de capital. Os dados foram tratados e analisados com auxílio do software SPSS, mediante estatística descritiva, correlação e regressão linear. Os resultados demonstram que o Endividamento a Longo Prazo e o Endividamento Total apresentaram coeficientes negativos, o que denota uma relação inversamente proporcional entre eles e a gestão familiar. Na regressão, os resutados apontam que as dimensões de propriedade na gestão familiar e a concentração acionária influenciam significativamente no endividamento das empresas. Denota-se uma tendência de que essa influência em empresas familiares torna-se mais significativa quando avaliada em aspectos de longo prazo. Mesmo com essa característica, empresas familiares tendem a apresentar-se menos endividadas se comparadas às demais. O controle acionário nelas não se mostrou significante nas análises propostas. E a relação entre gestão familiar, concentração acionária e controle acionário com o custo de capital não demonstrou significância, divergindo de outros estudos que evidenciaram significativas influências nessas relações. Ao final são apresentadas limitações e sugestões para novas investigações.
... Different types of hierarchical inconsistencies might be associated with different daily job dynamics of nonfamily executives. For instance, hierarchical inconsistency between a parent and a child sometimes implies succession, and nonfamily executives might spend lots of time and energy facilitating the succession by mentoring the young successor and balancing the interests of different stakeholders during the turbulent transition period (Aronoff, McClure, & Ward, 2003;Michel & Kammerlander, 2015). In contrast, managers working in firms with hierarchical inconsistency between siblings might be less likely to focus on such responsibilities. ...
In this study, we propose hierarchical inconsistency among family-member top leaders as a novel structural reason for nonfamily executives' high compensation in family firms. Hierarchical inconsistency among family-member top leaders is observed when the head in the formal business hierarchy is not ranked the highest among family-member executives and directors in the informal family hierarchy. We argue that this structure triggers contestations between the heads of the two hierarchies, adding complexity and challenges to nonfamily executives' jobs. Family firms with hierarchical inconsistency among family-member top leaders need to offer higher compensation to make up for the demanding features of these professional managers' work. The positive relationship between hierarchical inconsistency and nonfamily executives' compensation is weaker when the proportion of female family-member executives and directors is high and when the formal head's tenure is long. We use data from publicly listed family firms in China to test our arguments. Our study contributes to family business research by suggesting how the interplay between family relationships and formal organizational structures influences job features and compensation decisions.
... 80% to 90% of the world businesses are owned and managed by families. [5]. Half of the employment rate and that of the gross domestic products are produced by family-owned businesses [8,15,19]. ...
The study investigated the causes of failure among family owned businesses in South-East, Nigeria. Specific objectives were to; evaluate major family business enterprises that have failed in South-eastern states, Nigeria; investigate the causes of failure of these family owned business enterprisesidentified in South-eastern states in Nigeria; explore strategies that will help prevent such failures in other family owned business enterprises in Nigeria. The study adopted a qualitative approach in analyzing the causes. Historical analysis of ten indigenous family owned business situated in South-eastern, Nigeria that have gone into extinction, were thoroughly carried out to identify factors that contributed to their extinction. It was found out that; death of founder(s), financial constraint, poor management, market complexity and competitions are the main contributors to family business failures and extinctions in Southeastern, Nigeria. Thus, it was recommended family business owners should be liberal, open-minded, flexible and inclusive in making business decisions that will propel their enterprises to greater height. More so, competent hands, professional business consultants and advisors should be incorporated in managing the business. This will ensure the success and fecundity of the business. Though, the study encountered a slight challenge as regards to the availability of resources, because relevant information that would have enriched the result, were not documented or uploaded on the internet. However, the findings of the study contributed immensely to the body knowledge of family successes, growths and failures in Nigeria.
... With succession planning, family businesses are expected to have the next generation (successors) who have the knowledge and ability to manage business risks, seek business opportunities, and the ability to innovate when a crisis occurs, such as the COVID-19 pandemic and a great desire to continue the family business. This is consistent with the belief (Aronoff et al., 2003) that succession is a process of transferring authority and leadership that includes several measures to secure the continuity of the family company from generation to generation. However, succession is usually a problem for business families because only 30% of business families survive to the second generation (Beckhard & Gibb Dyer, 1983) and the results of the Family Firm Institute study (Achleitner et al., 2014) found that 30% of companies survive to the second generation. ...
This article aims to describe the impact of external factors (government policy and collaboration synergy) and internal factors (successor knowledge and successor willingness) on the future viability of small and medium enterprise (SME) family businesses during the COVID-19 pandemic and experimentally validate the significance of firm age and gender as moderators. Partial least squares structural equation modeling was used to analyze data from 170 owners or the next generation of family business SMEs. This study discovers evidence that government policy, collaborative synergy, successor knowledge, and successor willingness all significantly influence the SME family business’s viability. Meanwhile, it has been found that company age has a role in moderating the synergies between government policy and collaborative synergy with sustainability. However, gender is not proven to moderate the influence of internal factors on sustainability. The findings of this study imply that SME families must be able to form successors with the ability and knowledge to obtain business opportunities. During the COVID-19 epidemic, there must be an intense commitment to be responsible and transmit the family company to attain sustainability. In addition, the owner/next generation of family business businesses must take the initiative to take advantage of government assistance and collaborate with stakeholders.
... Arenas y Rico (2014) afirman que el relevo generacional, también conocido como sucesión, es un proceso natural debido al envejecimiento de las personas; planificado y organizado de continuación de una persona en lugar de otra; con características similares o superiores. Según Aronoff et al., (2003), la sucesión cumple una transición de liderazgo y propiedad de una empresa, de una generación a otra. Este proceso de planificación y administración de toda la vida abarca procesos y rangos encaminados a asegurar la continuidad de la organización a través de las generaciones. ...
El desarrollo de este documento identifica una base conceptual de los términos: Industria 4.0; Educación 4.0; Universidad 4.0; enfocados a la Cuarta Revolución Industrial, siendo una investigación cualitativa que sigue un proceso de revisión sistemática de la literatura, basado en el período de 1986 al 2023 desde el paradigma hermenéutico objetivo, permitiendo comprender las dimensiones en los procesos de la gestión educativa. Se presentan tres hallazgos relevantes: 1) Comprensión de conceptos; 2) Retos de la gestión del capital humano; 3) Elementos para la planificación de la sucesión en las organizaciones educativas debido a la necesidad de identificar grupos de talento de acuerdo a los sistemas socio-estructurales de las Instituciones de Educación Superior para la reducción de brechas y fortalecer el liderazgo organizacional mediante la renovación de competencias para el futuro.
... Similarly, the motivation and traits of next-gens have been investigated to explore career intentions (Zellweger et al., 2011;Schröder et al., 2011). A stream of studies on careers also explains the succession process (Aronoff, McClure, & Ward, 2003), selection of a successor, career prospects, and retirement planning (Daspit, Holt, Chrisman, & Long, 2016). To advance the current understanding of careers in family businesses, Baù et al. (2020) suggested considering the careers of next-gens from the family dimension by incorporating career development theories. ...
This study employs an interpretive grounded theory approach to explore how family contexts shape the early-stage career development of next-generation family business members (next-gens) in succession and non-succession careers. Career theories suggest that early-stage career development is an outcome of individual–context interaction. However, the current literature on careers in a family business offers limited insights into the enabling and constraining contexts within the family, such as the family social system, marriage, traditions, and cultural environment. In line with the systems theory framework of career development, our findings demonstrate that individual and family contextual interactions not only shape the careers of next-gens but also drive variations in succession and non-succession careers. Our study contributes to the literature by constructing an early-stage career development model that helps to explain the importance of marriage and family traditions in the early-stage career development of next-gen family business members.
... Table 3 (2) expanding the definition of age with including dummy variables for age category: over 30 years, between 20-30 years, and less than 20 years, in order to examine the possibility of young and progressive predecessor beyond the founding generation. Following Poutziouris et al. (2015) and Aronoff et al. (2003), the change of generations in the family firm occurs on average every 30 years. The results suggest that young family firms (between 20-30 years) exhibit a significant and negative association with dividends. ...
This study aims to examine whether or not family control benefiting the internal and external governance mechanism to mitigate to agency problems affecting dividends in a capital market environment to improve investor protection such as Indonesia. The quantitative analysis model was used to test the hypotheses based on the panel data analysis of 58 family firms listed from 2012 to 2019, and the random effect technique (pooled EGLS). The findings indicate that internal governance mechanism (family ownership and family board representation) are irrelevant to the dividend policy. However, external governance mechanism (debt) negatively affects dividends. This means that debt plays a significant role in influencing dividend policies. In addition, it provides the issue from institutional setting, when legal protection for minority shareholders is improving, the governance role of families become less effective to monitor the firms.
... Succession is a process of transferring power and leadership which is carried out with various steps to ensure the sustainability of the business from generation to generation (Aronoff, 2003). In general, there are three succession patterns for top-level management that are usually applied by companies in Indonesia (Susanto, 2007). ...
The family business has a characteristic in which the transfer of leadership is given to one of the family members as the next generation to maintain the continuity of its enterprise. Most family businesses in Indonesia do not yet have its succession plan. One of the keys to a successful selection of prospective business successors is to determine the right leadership criteria. This research aims to (1) identify indicators of successor characteristics, (2) identify leadership criteria, and (3) compose an evaluation of the succession at CV. Sentra Motor Sport (CV.SMS), a family business in the automotive sector located in Bogor, Indonesia. The tools for this research are successor’s characteristics indicator, ACE MAN leadership criteria, and post-succession evaluation. The study employed descriptive-qualitative methods from primary data obtained through in-depth interviews with the predecessor, successor, and the employees of the family business. The total number of respondents were five persons. The interviews were conducted from June to July 2020. The results showed that the indicators of successor characteristics were in accordance with the expectations of the founder. The results of the ACE MAN leadership criteria assessment showed that the most dominant criterion was networking and the smallest ones were charismatic and achieving. According to the post-succession evaluation, the successor’s leadership criteria of CV. Sentra Motor Sport could be categorized as a successful case.
... Según Aronoff, McClure y Ward (2003), la sucesión es una «transición de liderazgo y propiedad de una generación a la siguiente… es un proceso permanente de planificación y administración, incluye un amplio rango de pasos enfocados a garantizar la continuidad de la empresa a través de generaciones» (p. 4). ...
El presente trabajo contribuye a las investigaciones sobre la continuidad de los negocios familiares, al dar evidencia empírica de la coexistencia y la retroalimentación entre los procesos de sucesión, profesionalización e institucionalización, a partir de elementos de planeación estratégica, recursos humanos y órganos de gobierno. Se empleó una metodología cualitativa, de alcance descriptivo, a través del método de estudio de caso. El trabajo se llevó a cabo en una pequeña empresa familiar ubicada en la Ciudad de México, dedicada a servicios tecnológicos especializados. El proceso de sucesión se da desde una lógica institucional familiar. El padre fundador ha fungido como mentor del sucesor, y bajo su liderazgo —aunque no de manera consciente— ha llevado a cabo la profesionalización e institucionalización con la participación del sucesor. Con la profesionalización del sucesor y la incorporación de externos profesionales en áreas clave de la empresa, se espera mayor eficiencia operativa y un mejor desempeño financiero. A pesar de que el negocio lleva 15 años en el mercado, no cuenta con una estructura organizacional sistematizada que le permita ser más eficiente y obtener mejores resultados financieros, por lo que a partir de la institucionalización, se dan los elementos estructurales que dan soporte al modelo de negocio, a fin de que las decisiones tomadas por la gerencia no sean reactivas sino proactivas, y más en entornos económicos dinámicos y hostiles (como la crisis de salud ocasionada por la pandemia de COVID-19). Este trabajo revela los elementos que contribuyen a aumentar el porcentaje de empresas, principalmente de micro y pequeñas, para alcanzar el traspaso generacional del padre fundador a los hijos, a partir de visualizar la coexistencia y retroalimentación entre los procesos de sucesión, profesionalización e institucionalización para la continuidad de la empresa familiar. Se rescata la importancia de formalizar el protocolo familiar a fin de dar certidumbre del traspaso del control y la propiedad. El proceso de institucionalización puede generar conflictos entre el padre fundador y el sucesor en sus formas de asumir riesgos y de gestión estratégica. La crisis de pandemia COVID-19 evidenció que una de las principales fortalezas de la empresa familiar es la solidaridad y compromiso de los miembros familiares ante situaciones de crisis. Finalmente, el proceso de sucesión, para que tenga una mayor probabilidad de éxito, requiere la profesionalización del sucesor, y esto, a su vez, genera la institucionalización de la organización.
... Looking at the phenomenon of many family businesses that have been built for decades by the first generation, they ultimately fail because of the inability of the successor to run the company. In this case, most of the causes of failure are the inability of the owners in the next generation to prepare for succession planning as well as family enterprises lacking long-term strategies, inadequate knowledge of process and planning (Aronof, 2003). This phenomenon is in line with the results of past research conducted by the Family Firm Institute mentioning that approximately 70% of the family companies fail to achieve success in the second generation, whereas 30% survive into the second generation, while 12% in the third generation and only 3% in the fourth generation (Tjahjadi et al., 2013). ...
This study aimed to examine the role of strategic planning as a
mediate in affecting succession planning, non-family leadership on the
successful succession of family businesses. The population is the family
businesses in the second or third generation. One hundred managers or CEOs
of the family businesses were selected as samples using purposive and
convenience sampling technique. Quantitative analysis methods are applied
to analyse the data. The result showed that succession planning does not
significantly affect the successful succession of family businesses.
Nevertheless, the effect of succession planning is significant to strategic
planning, and strategic planning was significant affected success succession.
Therefore, succession planning is fully mediated by strategic planning
through the success succession of family business. Furthermore, non-family
management does not significantly and directly affect the successful
succession, and neither, non-family management is mediated by strategic
planning through the successful succession of the family business.
... Family businesses are a part of entrepreneurship development and an important aspect of economic development and economic transformation offering jobs and creating wealth for families and other people working in the family businesses (Aronoff et al. 2003). Family-owned businesses are those in which two or more family members have control over the financial resources (Fuller 2011). ...
The United Nations Sustainable Development Goals 7 highlights the need to achieve universal access to clean and affordable energy, however, sub-Saharan African (SSA) countries have serious limitations with access to clean and affordable energy. Most households in SSA, especially those in rural areas, remain decidedly dependent on using polluting fuels, such as kerosene, wood and charcoal as their main household energy use. In this study, we explore how income and other household attributes explain the variations in energy use in Rwanda. Using robust methods that account for possible outliers and measured errors, we estimate the Engel curves of four energy types: electricity, charcoal, biomass and other energy types in the country. We notice two striking results. First, the income elasticity from electricity is elastic for urban households, an indication that electricity is treated as luxury for urban household. Second, the energy consumption patterns show significant heterogeneity between rural and urban households. The heterogeneities observed in the energy use patterns between rural and urban dwellers suggest that the framers of national energy policy should take cognisance of this fact. Further, there is the need to intensify efforts that decarbonize energy sector by availing affordable alternative energy sources, including LPG especially in rural areas to reduce the biomass consumption.
... Neglecting the planning of the succession process can have a critical impact on generational exchange in the family business (Bennedsen et al. 2015) and an existential impact on the family business in the future (Fritz 1997). Research shows that owners often have a negative attitude towards succession planning and consciously postpone it (Aronoff et al. 2003). According to Sharma et al. (2003), succession planning improves the success of this process. ...
Generational transfer is a risky point in the life cycle of any family business, and thus the succession process should not be underestimated. Family businesses in Slovakia began to appear after 1989, and therefore many of them await the process of generational exchange in the coming years. For this reason, research on generational exchange has been limited. The aim of this paper was to evaluate the attitude of the owners of Slovak family businesses to the succession process and to reveal the key factors that positively or negatively affect this process. A semi-structured interview was selected as a tool for data collection, in which 74 family business owners took part. The findings were evaluated by the text mining method and afterwards transferred to a scatter diagram in concepts. Based on the clusters in the scatter plot, we revealed the key factors that the current owners consider to be a risk in successfully managing generational exchange. We found that only 48.64% of owners started the succession process, which proves the importance of solving the problem in Slovakia.
... Those included: family identification, effective generational dialogue, and high-quality relationships. Harmony and teamwork among family firm members created positive behaviour and a healthy work environment (Aronoff et al., 2003). The collective vision among the two generations formed shared understanding to value the legacy of the family firm (Bennedsen et al., 2007). ...
This paper contributes to the family business literature by exploring the link between trans-generational succession and socio emotional wealth (SEW) from an institutional perspective. It examines the neglected role of the macro environment in the formation of SEW. A single case study of a family firm is investigated. The firm has successfully experienced trans-generational succession in Palestine, an 'extreme context' that is underrepresented in the current literature. Findings are drawn based on the utilisation of an exploratory inductive research approach. Results reveal that having an 'opportunistic entrepreneurship' style is a driving force in exploiting the macro environmental challenges which exist where family firms operate. Along with adopting micro mechanisms at an organisational level, a collective nature of SEW characterised by strong family identification was formed. The paper concludes by presenting a fresh perspective of constructive trans-generational succession of family firms operating in volatile environments and exhibiting resilience to uncontrollable challenges.
... Succession is a process of transferring power and leadership from the predecessor to the successor in order to ensure that the business can endure from generation to generation (Aronoff, 2003). Succession can run well if it is planned. ...
Family business is a dominant type of business in Indonesia. However, studies have confirmed that only few of them can sustain longer. Succession has not been in the agenda of most family businesses in Indonesia. This research aims at observing succession process in a family business in order to understand how the process is conducted and how well it is according to Walsh’s. The researched family business is a business operating in tourism sector, which is processing succession to the second generation. The research gathered information from the owner and the two children who are the successors. Interview and observation were to gather information and descriptive analytic was applied to describe the process of succession. The results indicate that the succession planning in terms of management succession and ownership succession run relatively well and the desired outcomes can be identified clearly. However, the successors are considered as not yet ready for taking the business. Involving them in the strategic activities can possibly fasten the process to make them being ready.
... Given our arguments above, we believe that one aspect that is unique about the socialization of next generation members in family firms is that, unlike the socialization of a non-family employee which starts when the employee joins the organization, the preparation of the next generation often begins in childhood (Aronoff, McClure, & Ward, 2011;Beckhard & Dyer, 1983;Handler, 1990;Meier & Schier, 2016;Morris, Williams, Allen, & Avila, 1997;Sharma, Chrisman, & Chua, 2003). Because of this, the socialization process can have an important impact on the feelings and behaviors that next generation members develop towards the family firm. ...
Although researchers have highlighted the importance of next generation commitment for the continuity of a family firm, we have a limited understanding of what family businesses and business families can do to facilitate this commitment. This paper discusses the role of socialization in this process. Building on previous work on organizational socialization, this project presents a conceptual model of how different aspects of the socialization process (i.e., who delivers the socialization, what is done in the socialization, how socialization is executed, and when socialization occurs) affect the development of affective commitment in next generation members of family firms. Preliminary support for the model is presented based on interviews with family and non-family members from 11 family-owned companies. Implications and contributions of the model are discussed.
... The succession process plays an important role and remarkably influence the determination of the future of the desired family business (Ramadani and Hoy, 2015). Succession planning is a process of leadership transition between generations within a family enterprise as an effort to keep the business Aronoff et al., 2003). Thus, succession planning is one of the basic challenges in maintaining and developing the company further. ...
This current literature looks closely into the aspects of family firm and innovation to enhance the general understanding on Indonesia's family business innovation. More specifically, the attention will rest on the challenges and opportunities of the family business. Indonesia promises a huge potential of economics' prospects, one of which comes from its wealth of natural resources. There is also a series of dynamic social and cultural characteristics in Indonesia that uniquely support its bustling economic development. The family-owned businesses' innovation processes highlighted in this chapter shall explore and resolve issues connected to innovation's implementation.
... A key area of family business research related to occupational choice and personal development is succession planning (Minichilli, Nordqvist, Corbetta, & Amore, 2014;Schlepphorst & Moog, 2014;Strike, Berrone, Sapp, & Congiu, 2015). Given family businesses' interest in transgenerational continuity, preservation of the family legacy, and maintaining socio-emotional wealth (Gómez-Mejía, Haynes, Núñez-Nickel, Jacobson, & Moyano-Fuentes, 2007), understanding how to best groom a successor and manage the succession process is of the utmost importance to the field (Aronoff, McClure, & Ward, 2003;Handler, 1994). Research on succession planning and succession mechanisms in family businesses often focuses on incumbents' career horizons, retirement planning, and the development and selection of successors (e.g. ...
The purpose of our special issue is to demonstrate how a careers perspective can contribute to the study of family businesses and bring to light how the family business context extends and challenges career theories and concepts. Inspired by the studies in our special issue and our review of previous research, we propose a conceptual model that leverages the concept of family embeddedness and intertwines it with career processes and outcomes. Building on the family embeddedness perspective, we propose several avenues for future research for family business and career scholars.
... Family-owned companies play an essential part in capitalistic economies. These businesses dominate the entire world businesses from 80% to 90% (Aronoff, Mcclure & Ward, 2010). Family businesses are also accountable for generating 50% of all employment and 50% of the gross domestic product (Dingliana, 2013;Kolawole, 2013;Onugu, 2005). ...
Purpose: The study sought to examine the impact of financial literacy and financial inclusion on small businesses’ overall performance with special reference to Southwest Nigeria. Methods: Descriptive survey research sketch was adopted for this study, while the purposive sampling method was employed to choose forty small scale businesses registered with SMEDAN from each state capital of South Western of Nigeria that engaged in petty trading, bakeries, block-making, soup-making, tailoring, and agro-allied, totaling 240 participants as a sample size for the study. Data were collected by using a closed-ended questionnaire designed for the study, while simple percentage, mean, standard deviation, Pearson Product Moment Correlation (PPMC), and Ordinary Least Square (OLS) was used to analyze the data. Results: The findings disclose that financial literacy and financial inclusion jointly and independently affect small businesses’ performance. It revealed a positive and significant relationship between financial literacy and financial inclusion. However, the study depicts that majority of business operators did not have financial knowledge such as working capital management, accounting records system, financial reporting, cashbook maintenance, income statement, daily cash reconciliation, internal control on cash, and cash budget. Also, the study confirmed that the majority of small business entrepreneurs are financially excluded from micro-financing, emergency loans, employ purchase financing, business bank loans, and micro-insurance plan Services. Implications: The implication of this study is that if the Central Bank of Nigeria partnership with other professional organizations to promote financial literacy and inclusion programs to all business entrepreneurs across the nation, it will motivate more business entrepreneurs in Nigeria to have access to finance.
... Family businesses are a part of entrepreneurship development and an important aspect of economic development and economic transformation offering jobs and creating wealth for families and other people working in the family businesses (Aronoff et al. 2003). Family-owned businesses are those in which two or more family members have control over the financial resources (Fuller 2011). ...
This volume represents a cornucopia of research studies coming out of an international conference held in Kigali, Rwanda in 2018. The essays comprise contributions on various microeconomic and macroeconomic policy angles that are crucial for a less developed economy to embark on a road to recovery to converge with the desired trajectory. The topics encompass a broad range of issues like the role of savings, capital formation, human capital, innovations, entrepreneurship, profit-shifting by multinational corporations, small and medium enterprises (SMEs), and firms’ strategies for achieving sustained and balanced growth. The chapters are organized under three major themes based on the commonality of areas that they cover: (i) Macroeconomic Constraints: Monetary Policy, Investments, and Population; (ii) Firms’ Performance, SMEs, and Role of Entrepreneurship; and (iii) Entrepreneurship and Business Performance: Strategies and Policies. It has a collection of 12 empirical studies that have an overall focus on macroeconomic policies such as savings among the rural poor; sustained investments in and development of capital markets; role of entrepreneurial sustainability; role of innovations for firms’ performance; healthcare reforms; the benefits of technology, policy incentives such as tax benefits for promoting growth, and strategic considerations such as marketing or positioning strategies; export strategies; and productivity enhancement via processing and profit sharing. With contributions from 27 authors, the studies bring forth knowledge about the factors that influence well-being via better technologies and innovations favoring productivity, firm performance, and their positive externalities in the food, nutrition, and health sectors. Given the wide-ranging coverage of top-down and bottom-up approaches and strategies for development, the book offers insights for policy interventions necessary for Rwanda’s gradual transition from agriculture to an industrial transformation via manufacturing and service-led development without smokestack industries.
... Family businesses are a part of entrepreneurship development and an important aspect of economic development and economic transformation offering jobs and creating wealth for families and other people working in the family businesses (Aronoff et al. 2003). Family-owned businesses are those in which two or more family members have control over the financial resources (Fuller 2011). ...
Maternal mortality is one of the leading causes of death among child-bearing women in Africa. One of the major challenges facing women in rural areas in Africa is delivering their babies safely, thereby curtailing excessive bleeding during birth. This paper focuses on optimizing costs related to delivery of blood using drone technology by determining how much blood is shipped from the distribution center to each destination center to help minimize total shipping costs. We envisage that drone-aided healthcare services can reduce the shipping costs associated with transporting blood from the point of origin to the centers. This paper also examines a classical optimization problem referred to as the transportation model in which the supply depends on the demand in the various facilities in rural Rwanda. Our study focuses from the start of drone operations in Rwanda in 2018. Using this model, we observe that data is critical for the success of any facility location analysis. Our preliminary results show that the associated travel from the second distribution point of origin to all destination centers (except the third destination) is optimal since the quantity of blood transported from the same point of origin to the same centers is zero. The results of the integer linear programming show optimality. Drone-aided networks using a mathematical optimization model and a simulation analysis help in understanding transportation costs associated with transporting blood in Rwanda so as to reduce maternal mortality.
... Building on the call of Nordqvist et al. (2013), this article deals with business succession processes with a focus on the change in both ownership and management. Following Aronoff, McClure, and Ward (2003), Haunschild and Wolter (2010) as well as Freiling and Gersch (2011), business succession is a "change in both ownership and leadership" (Freiling and Gersch 2011, 13), both of which are transferred from a firm's current owner (group) with decisive rights to control or voting capital and a seat in the management board of the company to a natural person (or group) that acquires a majority stake in the firm's voting capital either solely or in combination with providers of capital and that constitutes the management board solely or partly (Poeschl and Freiling 2019). ...
There is often a “hard break” if family businesses undergo a family-external business succession. This break materializes in the way how the company conducts entrepreneurial action as external successors often lead differently and it takes considerable time to take action. This may cause crises that are hard to handle. This article employs entrepreneurship theory to locate the areas where problems occur and conducts multi-case study research to examine the problems by qualitative empirical research. Developed propositions condense the core findings. The findings reveal the tension of family firms in successions as the entrepreneurial tasks range on a high level while neither predecessor nor successor are fully in place. Delegation to skilled, empowered staff or even outsiders is an effective response during pre-succession phases. In the post-succession phase, alert prioritization approaches allow successors to cope with the multitude of entrepreneurial challenges. Organizational routines and management directives support the succession over the different phases.
... A proper succession planning process provides the family business with the opportunity to select the effective leaders who are able to take the business to a new level (33). (34) stated that succession is a life-long process that encompasses everything aimed at ensuring the continuity of the business through the generations and succession planning process includes all the actions, events, and organisational mechanism by which leadership of the business and ownership is transferred. (35,36) argued that succession is not a once off event, but a process that requires planning in a way that prevents unpleasant surprise and involves a series of strategies implemented over time. ...
... The research focus on family-internal successions does not perfectly reflect developments in European countries as to the proportion of family-internal vs family-external business succession: e.g. in Germany approximately 40 percent of family businesses between management. Thus, by drawing on Aronoff et al. (2003) and Haunschild et al. (2010) business succession is being defined here as follows. ...
Purpose
The purpose of this paper is to explore the under-researched family-external business succession process. It makes use of entrepreneurship theory in order to conceptualize this temporal process. This allows for an operationalization of entrepreneurial functions and tracking them during the two main phases of such processes. This study provides a starting point for further endeavors into researching family-external succession processes.
Design/methodology/approach
This paper is based on an explorative, quasi-longitudinal, qualitative and multiple case-study approach. It became possible to create trust with stakeholders in three family firms and to conduct face-to-face interviews with a total of 12 interviewees, generating over 300 transcript pages. The case interviews were validated through two expert interviews. A priori research propositions were tested and modified, if deemed necessary.
Findings
Entrepreneurial functions during the two main phases of the process seem to be carried out and aligned depending on several influencing factors: delegation of responsibilities from owner-managers to qualified employees; incumbent owner-managers being heavily involved in the succession’s facilitation and neglecting some entrepreneurial functions; and as a result new owner-managers being forced to prioritize certain functions in the second phase.
Originality/value
This paper benefits from a rather unique access to three family firms undergoing succession in the DACH-region. Therefore, it became possible to study the family-external succession process by including various stakeholders involved. Such an inclusion of perspectives has been suggested by family business scholars for a long time.
... The research focus on family-internal successions does not perfectly reflect developments in European countries as to the proportion of family-internal vs family-external business succession: e.g. in Germany approximately 40 percent of family businesses between management. Thus, by drawing on Aronoff et al. (2003) and Haunschild et al. (2010) business succession is being defined here as follows. ...
... The scholars Aronoff and Ward (1992) viewed the issue of family business rivalry as an underlying issue of the business owners not treating the business as a business but as an extension of their home. They came up with suggestions to counter the conflicts that arise like developing family policies that anticipate these family business issues, putting outsiders on the board of directors, initiating family meetings as a communication and conflict resolution mechanism, as well as agreeing on methods to reconcile family business conflicts (Aronoff and Ward, 1992: 50). ...
The research explores the development of family businesses in North Cyprus, carried out from a theoretical and practical perspective. The aim is to uncover the factors contributing to positive succession from challenges identified in six theories most referenced in literature of succession in family businesses. These six theories, Agency Theory, Stewardship Theory, Resource Based View Theory, Theory of Succession Planning and Mentoring, Theory of Family Business Rivalry and Systems Theory, are used in the North Cyprus family business community sample. The research adopts a qualitative methodology, with data collection making use of 22 face to face in-depth, semi-structured interviews. The research made use of a computer aided qualitative data analysis software called NVivo. A program, producing quantitative analysis from data that is collected qualitatively. The findings revealed that family businesses in North Cyprus have established a succession system that is breeding positive results. Most of the success attributable to the collectivistic cultural beliefs of the family business owners. The need for the government to address policy with regard to gaps in trade laws among other resolutions for issues raised would address the country`s recent (2013) prediction of a looming crisis of an unemployment rate increase in their near future.
Even though the contemporary theories date back to the 1980s and 1990s, immigrant entrepreneurship is still considered a nascent field. In the last decade, influx of immigrants moving from the Middle East towards various destinations renewed the attention of researchers in the field and encouraged them to investigate different aspects of immigrant entrepreneurship. Family business phenomenon among migrant enterprises is the foremost of these research strands. A plethora of research pointed out the significance of embeddedness of immigrant entrepreneurs in their family. This chapter focuses on the family business framework among the immigrant-owned entrepreneurial ventures, the role of family on resources, succession plans, challenges, social relations and future pathways. To illustrate these points, in-depth interviews were conducted with eight migrant restaurateurs located in İzmir. Findings revealed that family businesses and migrant enterprises are deeply intertwined in many aspects. Succession plans appear to be vague and ambiguous for migrant restaurateurs in İzmir. Moreover, family plays an important role in acquiring various resources. Lastly, challenges faced by the migrant entrepreneurs can be overcome with the help of family members.
Succession planning is crucial for organizational continuity and plays an essential role in human resource management. While many organizations have succession plans, those that don't may face unexpected challenges. Developing talent pools for vital jobs is crucial for an organization's long-term success and continued operations.
Entrepreneurship, mindfulness, and authentic leadership are three concepts increasingly being studied together. This chapter explores their interconnectedness, highlighting research that shows mindfulness can help entrepreneurs be more focused, creative, and resilient, while authentic leadership can help create a positive, supportive work environment. By cultivating these skills, entrepreneurs increase their chances of success.
Mindfulness can help entrepreneurs stay in the present moment and avoid getting caught up in thoughts about the past or future. It can also help them be more creative, remaining open to new ideas and different perspectives. Finally, it makes them more resilient, able to manage stress, and bounce back from setbacks. Authentic leadership can help entrepreneurs build trust with employees, creating a sense of shared purpose and providing resources needed to be successful.
This chapter focuses on the beneficial relationship between entrepreneurship, mindfulness, and authentic leadership:
Mindfulness can help entrepreneurs identify and evaluate opportunities. Mindful entrepreneurs are more likely to be aware of their surroundings and notice opportunities that others may miss, thinking creatively about how to capitalize on these opportunities.
Mindfulness can help entrepreneurs manage stress and adversity in a healthy way, e.g., bouncing back from setbacks more quickly.
Authentic leadership can help entrepreneurs build trust and rapport with their employees. Authentic entrepreneurs are more likely to be seen as trustworthy and credible, leading to increased employee engagement and productivity.
Authentic leadership can help entrepreneurs create a culture of innovation and creativity, where employees feel safe to take risks and share ideas, fostering innovation and creativity.
La succession parents-enfants, sujet important dans la recherche sur l’entreprise familiale (EF), est un processus réputé long, progressif, risqué, non-linéaire et souvent conflictuel. Ce constat répété invite à s’interroger sur les phénomènes qui activent ou ralentissent ce processus et comment ils se manifestent dans l’activité des collaborateurs. Selon la théorie, la succession peut être vue comme un acte de gestion inhérent à l’essence des EF, comme un paysage transitionnel marqué par des ponctuations et des ajustements de rôles, comme une forge de personnalités entrepreneuriales, masculines ou féminines, ou encore comme un déroulement sans dessein de l’action, au fil d’un temps vécu de l’intérieur. Notre thèse s’inscrit dans ce quatrième courant, celui des approches processuelles du changement et adopte une analyse par les pratiques, inspirée de la théorie des routines organisationnelles dans sa perspective structurationniste. Le quotidien d’une PME du bâtiment, liée à l’entreprise jumelle dirigée par l’un des deux successeurs, est suivi, au cours d’une transmission complexe (de deux aînés vers deux descendants), par une ethnographie affective, sur trois ans, au cours desquels les lieux d’observation s’adaptent pour voir la succession se faire, à travers les pratiques de l’équipe commerciale élargie, via la tenue d’un journal détaillé ponctué d’entretiens individuels. La transformation progressive des pratiques, sous-tendues par des routines qui naissent et changent avec plasticité, montre comment, jour après jour, les affects positifs ou négatifs amènent les collaborateurs à déplacer leur allégeance des prédécesseurs vers les successeurs. Notre recherche apporte, en complément des modèles existants, tant ceux de la succession que ceux de l’évolution des routines, une explicitation du moteur interne de changement qui permet au collectif de « faire succession », en l’absence de plan ou d’objectifs temporels et en l’absence d’un dialogue rationnel sur le sujet entre les dirigeants familiaux. Elle ouvre sur plusieurs perspectives de recherche possibles, en prolongement de nos résultats, dans les différents courants de recherches reliés à notre sujet.
Individuals from the same family manage the family business, and the decision-making process is in full responsibility of the company's founder, owner, or successor. This research analyzed seven owners of small family businesses in Rio Grande do Sul, Brazil. The study applied the qualitative approach with an exploratory character to answer the following question: How does management occur in the succession process in family businesses? The qualitative data was analyzed by importing the content transcribed from the interviews into NVivo 11 Pro software. Next, we applied Bardin's content analysis. From the analysis, four categories were identified, namely: i) family succession process; ii) professionalization; iii) family conflicts and iv) decision-making. Concerning the succession process, there was inadequate planning by the owners and a lack of professionals to assist in knowledge. As for professionalization, the interviewees invest in the education of their successors, creating the opportunity for their children to prepare through undergraduate courses and specializations. Regarding family conflicts, particular interests were perceived among family, and situations of resistance to change from the interviewees, in accepting that the successors present new ideas, business or technology opportunities that can solve some deficiency of the company. Unbalanced emotions affect decision-making. As a result, there is the need to organize succession planning in a gradual and planned way to exchange power so that both successor and family are prepared for this transition.
Durante a história do mundo, as migrações afetam as regiões, tanto na área rural como na urbana, tendo reflexo no ambiente nacional e internacional dos países e sendo ainda mais preocupantes porque 70% dos migrantes são jovens, os quais, em grande parcela, são deixados de lado, uma vez que os formuladores de políticas públicas têm como alvo o lazer e a educação, descuidando de outras variáveis que afetam os setores sociais. Por essas razões, é importante trabalhar na formulação e consolidação das políticas sociais, criando estratégias sustentáveis com o objetivo de deixar o meio rural mais atraente para que os jovens rurais queiram permanecer no campo, construindo uma vida desejável em seus territórios e garantindo a sucessão das famílias. Nesse sentido, a presente tese tem como objetivo investigar e analisar as razões/variáveis/justificativas para a migração da juventude rural para contribuir na formulação de políticas sociais que promovam o campesinato colombiano. Para obter esses resultados, foram utilizados três instrumentos de pesquisa: revisão de literatura básica, roteiro de entrevista e questionário. Para
analisar os resultados, foram utilizadas as análises documental e de conteúdo, estatística descritiva e análise fatorial, que foram feitas com ajuda de alguns softwares como Iramuteq, Software R e Statistical Package for the Social Sciences (SPSS). O principal resultado encontrado demonstra que, no campo colombiano, ainda permanecem o conflito armado e a violência. Também se observou que o estado colombiano deixou a juventude rural desamparada; portanto, o governo deve
ver essas questões como uma prioridade urgente de atendimento, considerando que a sucessão do campo é importante para a evolução da sociedade colombiana. Para isso, entretanto, são necessárias transformações radicais nas políticas e programas públicos, pois eles não estão em consonância com a realidade dos jovens rurais. Porém não bastam apenas políticas sociais para mitigar a pobreza
dos campos colombianos, mas será importante também avaliar na sociedade a relevância da nova ruralidade que visa a estudar novas práticas de se viver no campo, atendendo a renda, além de estudar a relação e seus efeitos nas áreas rurais, o que se demonstra ser um aliado para mitigar as migrações rurais. Por fim, identificaram-se nas regiões estudadas o fenômeno de masculinização
do campo, que pode se transformar em um problema estrutural na sociedade agrária colombiana.
El objetivo de este artículo es dar evidencia de Empresas familiares (EFs) o no familiares, en su desempeño financiero, a partir de un análisis comparativo entre éstas. La investigación es cuantitativa de alcance descriptivo. Los principales hallazgos muestran cómo las EFs reportan un mejor desempeño financiero y mayor generación de empleos. Se dan las bases para generar estudios que midan la incidencia de los elementos característicos de la EF, mismos que permiten alcanzar sus objetivos financieros, socioemocionales y continuidad.
Pendahuluan Pelaku bisnis yang sukses bukan hanya dikelola oleh perseorangan dan kelompok formal perusahaan saja, tetapi banyak juga yang berasal dari pengelolaan berbasis bisnis bersama keluarga. Agenda bisnis seakan tidak memiliki batasan dalam hubungan darah apabila dalam lingkungan keluarga ingin membangun sebuah leading business. Untuk itu perusahaan finansial Credit Suisse merilis sebuah kajian mengenai bisnis keluarga yang berjudul Costumer Service Family 900 Universe. Dalam agenda tersebut terdapat 900an perusahaan berskala besar, menengah, bahkan kecil. Semua perusahaan tersebut setidaknya memiliki nilai investasi senilai 1 miliar dolar, dan para keluarga memiliki saham setidaknya 20 persen. Perusahaan keluarga paling fantastis memiliki nilai secara asset adalah Novartis, perusahaan medis dan obat-obatan yang didirikan oleh keluarga Sandoz yang memiliki nilai perusahaan 279 milyar dollar. Dari ratusan perusahaan yang dikumpulkan datanya oleh Credit Suisse, setidaknya 64 persen dari total berasal dari benua Asia. Hal ini menunjukan bahwa di negara timur masih banyak sekali perusahaan yang menjunjung sistem kekerabatan(Wibisono, 2016)
Buku ini menjadi catatan hasil pemikiran para akademisi yang menghimpun tulisan tentang implementasi Komunikasi Organisasi dalam lingkaran post-modernisme. Semoga buku ini membawa khazanah baru pada perkembangan ilmu komunikasi, dan secara praktis dapat menjadi panduan baru sehingga bermanfaat bagi para praktisi komunikasi di Indonesia
El objetivo de esta investigación es proponer una Gestión por competencias para el reclutamiento y selección de personal en las empresas familiares. La Gestión que se propone está formada por las opiniones extraídas de ejecutivos de las empresas familiares de la región centro del Estado de Coahuila, conformando un instrumento de investigación robusto y dinámico, aplicado a resultados objetivamente medibles. El complemento empírico se logra mediante la elaboración e implantación de un sistema integral de competencias, que consta de veintinueve unidades verificadas en una empresa piloto, obteniendo la evidencia necesaria a través de resultados.
Las empresas familiares en América Latina son más comunes de lo que se cree, de este tipo de organizaciones se desencadenan relaciones complejas de manejar y los conflictos son una realidad muy marcada cuando se da la sucesión en este tipo de empresas, estos se presentan cuando uno o varios integrantes de la organización sienten que existen desequilibrios, inequidad o preferencias que los afectan, a la hora de designar quien ocupara el liderazgo de la organización a raíz de la sucesión. Los conflictos de este tipo de sociedades por lo regular surgen en la relación que se da desde el núcleo familiar y esto es reflejado en la empresa, en algunos casos el miembro que se siente afectado plantea propuestas para dirimir el conflicto y sus planteamientos pueda que sean atendidos, aceptados y resueltos, con acuerdo y consenso. Es por lo anterior que surge la importancia de investigar dichos conflictos dentro de una organización, ya que si no se les da el manejo adecuado y oportuno la compañía tiende a desaparecer, porque cada uno de los integrantes de la misma trabajaran por un bien propio y no común, que permita que el legado del fundador perdure.
The Industry 4.0 theme has been debated all over the world since it had been offered in Germany in 2011. Turkey is closely associated with Industry 4.0 and makes a stride according to this subject. By the theme of industry 4.0, many technologies matured during the digitalization process come together to create a new industrial concept. Such components as big data, the internet of things, autonomous robots, augmented reality, 3D printers, cloud systems, et cetera are among those technologies. Numerous national or international enterprises adapted their business processes to Industry 4.0 by concluding digitalization transformation. However, SMEs, which are among the economically significant forces of the countries and constitute the majority of the total number of enterprises at the same time, is still at an early stage to work on this subject. On the other hand, the vast majority of these SMEs are also family businesses. Therefore, in this dissertation, it has been tried to reveal the awareness information about the theme of "Industry 4.0" of corporate communication employees working in these enterprises by focusing on SME-sized family businesses. Accordingly, in this study, four chapters are structured: These are; firstly, Conceptual Boundaries of Industry 4.0, secondly, Small Scaled (SME) Family Businesses and Industry 4.0, thirdly, New Possibilities of Industry 4.0, and details of the research project. Each subject discussed deeply in its chapter.
The purpose of this study is; To describe succession planning and an effective succession model, to create a successful successor, to describe the planning and design an effective succession model, and to create a successful successor in both PT. Danliris and Batik Semar. The method used in this study is qualitative descriptive. Data collection is by observation and using in-depth interviews. Informant selection was determined by purposive sampling. The validity of the data was tested by the source triangulation. The results show that PT. Danliris has been succesfully done the succession because the founder involved the successor. Although the delivery of the succession was unplanned, the mentoring process went naturally and create the third generation as the successor who has good responsibility for the sustainability of the family business. In the other hand, PT. Batik Semar did not perform succession effectively because the founder did not involve the successor. The founder still in charge in family business’ operations. The third Generation of Batik Semar is currently still leading and the successor just become passive leader. And up to now, the decision makers are still done by the founder. Keywords; Family Business, succession planning, effective succession model, qualified successor.
COVID-19 salgınında diğer ülkelerle kıyaslandığında vaka sayıları ve ölüm oranları daha düşük seyreden ve salgının daha kısa sürede kontrol altına alındığı Almanya, Tayvan, Yeni
Zelanda, İzlanda, Finlandiya, Norveç, Danimarka ve Japonya gibi ülkelerdeki kadın liderlerin krizde neleri doğru yaptıklarını incelemektir. Böylelikle çalışma ile kadın liderliğinin kriz yönetimindeki önemini vurgulamak amaçlanmaktadır. Devam eden bölümlerde sırasıyla; kadın liderliği ve kriz yönetimi kavramsal olarak ele alınacak, COVID-19 salgınını başarıyla yöneten kadın liderlerin kriz yönetiminin farklı aşamalarında
aldıkları önlemlerden bahsedilecektir.
Aile işletmeleri, tüm işletmeler gibi varlıklarını sonsuza kadar sürdürmek isterler. Nesilden nesile başarılı bir şekilde işletmeyi aktarmak amaçlanırken, pratikte bu durum tasarlandığı kadar kolay gerçekleşememektedir. Bunun ardında yatan birçok faktör olmakla birlikte, özellikle kurumsallaşma konusunda problemler yaşayan işletmelerde, yönetim devri önceki kuşak tarafından ihmal
edilmektedir. Yönetim devri süreci, oldukça sabır isteyen ve sağlam mekanizmalar üzerine kurgulanması gereken, işletmenin devamlılığı için kritik bir süreçtir.
Most of the businesses in Rwanda are family owned and managed. These businesses fall in the category of Small and Medium-sized Enterprises (SMEs). They face a lot of challenges including in their initiation, management, and lifespan, leading to most of them collapsing leaving many people jobless. Given that this study is an exploratory research, it uses a combination approach composed of positivism. The study’s sample is 49,000 SMEs registered on the Rwanda Revenue Authority (RRA) portal in Nyarugenge district. However, the study targets the managers/owners of these businesses. It uses simple random sampling to select the respondents. It did the Chi-square test to test for the determinants of entrepreneurship sustainability among family businesses. The results show a significant association between training and mentorship in entrepreneurs involving family members in the management, good family relationships, financial discipline, education levels, innovations, and business sustainability. The results also show that there is no significant relationship between financial resources and a business’ sustainability and that although the educational levels are significant for a business’ sustainability, these do not contribute much to its sustainability. The key factors that determine a business’ sustainability are innovations, involvement of family members in the management, training and mentorship of entrepreneurs, good family relationships, and financial discipline.
TÜRKİYE'de ve DÜNYA'da işletmelerin büyük çoğunluğu aile şirketleridir.
Aile şirketlerinin varlığı, uygulamaları ve sürdürülebilirliği ekonomi için çok önemlidir. Bu önemli konuyu tüm yönleri ile değerlendiren Türkçe ve İngilizce bir "aile işletmeleri serisi" yazmak istiyoruz.
Çalışma open access, akademik teşvik ve doçentlik kriterlerini sağlayacak uluslararası bir yayınevi tarafından basılacaktır. Kitap baskısını 2020 Ekim ayında tamamlamayı planlıyoruz. Bu çalışmaya bilimsel uzmanlığınız çerçevesinde katkılarınızı bekliyoruz.
Las empresas familiares representan el motor económico más relevante en la mayoría de los países de economía de mercado. Su enorme importancia macroeconómica ha originado el nacimiento de un movimiento de defensa de sus intereses. Sin embargo, falta por definir las directrices que configuran su tipología empresarial y societaria. El presente trabajo tiene como finalidad precisamente reflexionar acerca de la caracterización y tipología de las empresas familiares, tanto desde un punto de vista empresarial, como desde un punto de vista del Derecho de sociedades.
Nasze badania skoncentrowane są wokół sukcesji przedsiębiorstwa, szczególnie w przypadku ziszczenia się ryzyka zdarzenia incydentalnego, przez które autorzy rozumieją zdarzenia losowe, uniemożliwiające pełnienie funkcji zarządczych (np. śmierć, choroba uniemożliwiająca składanie oświadczeń woli). Celem przeprowadzonych badań na grupie 180 przedsiębiorstw zarejestrowanych jako tzw. jednoosobowa działalność gospodarcza w Polsce była ocena przygotowania sukcesji w przedsiębiorstwach na wypadek wystąpienia zdarzeń incydentalnych i związanych z nimi następstw prawnych i gospodarczych w prowadzonym przedsiębiorstwie, a także istniejącej luki rynkowej w sektorze usługowym obejmującej usługi ubezpieczeniowe i prawne wspomagające zarządzanie tym ryzykiem. Uzyskane wyniki wskazują, że małe przedsiębiorstwa, o zasięgu lokalnym i regionalnym, działające na rynku krócej niż pięć lat w największym stopniu starają się zapewnić ciągłość prowadzonej działalności na wypadek wystąpienia zdarzenia incydentalnego oraz wyrażają istotne zainteresowanie ubezpieczeniem takiego ryzyka. Proponowanym rozwiązaniem, które łagodziłoby skutki zdarzeń incydentalnych, jest instytucja pełnomocnika mortis causa, który prowadziłby działalność przedsiębiorstwa do czasu wyłonienia następcy.
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