Succession processes in family firms: A new perspective
Type
conference paper
Date Issued
2023
Author(s)
Abstract
Succession is the most prominent topic in family business research and the succession path that a family chooses will likely impact the future performance of the business. Yet surprisingly little is known about succession paths⸻the sequence, pace, and rhythm with which management, board, and ownership is transitioned from one generation to the next. Using an inductive, theory-building approach based on sequence analysis and evidence from succession paths in 142 public family firms in the US, we address this gap. Our study reveals nine distinct succession paths with five distinct sequences of how management, board, and ownership transitions are structured over time. These sequences not only vary in their pace and rhythm, but also in their performance consequences. Specifically, we find that family firms with fast-paced succession paths and those with slow-paced, rhythmic succession paths outperform those with irregular rhythms. Further, early-ownership transitions benefit firm performance. Establishing succession paths as a meaningful new concept in family business research, this study not only advances our understanding of the succession phenomenon but also extends our theoretical insights into temporal processes in family firm successions.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
Global Center for Entrepreneurship + Innovation
Event Title
Annual Meeting of the Academy of Management (AOM)
Event Location
Boston, Massachusetts, USA
Event Date
04-08 Aug 2023
Subject(s)
Eprints ID
270068