Succession in Family Business Through Authentic Leadership

Family businesses are the kind of organizations that are characterized by overlapping systems of ownership, management, governance, and family values. In family firms, the family is the main asset of the business, and family members are strictly bound to the firm. Due to the dominance of a specific family, the success of the company is closely linked to the proper administration of the duality in the industry, the existence of family and business simultaneously. This fact distinguishes family firms from other companies. Furthermore, managerial and ownership priorities of the owner family are maintained through intergenerational succession. And, the existence of multiple stakeholders and their conflicting demands necessitate a transparent and authentic leadership approach in this delicate process. In this chapter, it is proposed that in family firms, intergenerational succession is more convenient and less painful, in case an authentic leader who gives importance to high levels of awareness, transparency, and morality is in power.

Succession in Family Business: An Analysis through the Concept of Conatus

RESUMO Objetivo: objetiva-se, com este artigo, introduzir algumas contribuições do conceito de conatus para a pesquisa sobre sucessão em empresas familiares. Métodos: a sucessão tem sido uma das temáticas mais discutidas no campo de estudos sobre empresas familiares. O presente trabalho, de natureza teórica, procura agregar contribuições a essa literatura, compreendendo a dinâmica da sucessão através da exploração do quadro teórico-conceitual desenvolvido por Bourdieu. Resultados: o conatus pode ser interpretado como um projeto cultivado pela família e que deve ser perpetuado para e pelas futuras gerações. Assim, a compreensão da sucessão a partir deste conceito permite, dentre outras possibilidades, apreender as particularidades da transmissão do projeto construído pelo fundador para as gerações sucessoras da família, que seriam os responsáveis por perpetuar ou não o conatus. Conclusão: o conceito de conatus, posicionado no âmbito do quadro teórico-analítico mais amplo trabalhado por Bourdieu, oferece alternativas para a compreensão e a explicação da sucessão em empresas familiares de uma forma mais consistente e aproximada da realidade observada nesses processos, fornecendo fundamentos que podem contribuir para a elucidação de perspectivas ainda pouco exploradas na literatura sobre esse tipo de organização.

Reprodukcja klas posiadających a przekształcenia rynku

The article is devoted to the problem of succession in family business in the perspective of class positions’ reproduction. The analysis of succession is carried out with reference to Pierre Bourdieu’s theory, particularly in relation to reconstruction entrepreneurs’ class position withingradationally-relational model of social structure, description of economic field transformation and role played by entrepreneurs in that process, analysis of modal trajectories of entering the economic field and to strategies and forms of capitals reconversion. Transfer of capitals was entangled within model of transmission of knowledge, power and ownership in family enterprises. Succession next to starting own enterprise must be seen as one of dominant strategies for social position reproduction within a possessing class fraction. Those two ideal-type strategies can be mixed in practice of position reproduction and lead to hybridized forms of family business and new enterprise. Class position reproduction however, can lead also outside possessing class fraction to those richer in cultural rather than economic capital. Analysis of succession cannot therefore be limited to family business only but must be considered with reference to wider context of reproduction of social structure.

SUCCESSION IN FAMILY BUSINESS AS A FACTOR OF SUSTAINABLE DEVELOPMENT OF SOCIETY IN CHINA

Introduction. The article is devoted to the actual problem of the continuity of family business in China. Family as the smallest cell in society plays an important role for people, and the successful development of family business is significant for the stability of society.Methods. The article discusses four options for transferring a family business enterprise: to their only child, to several children, to a professional manager, and to the third generation of heirs.Results. The article presents the activities of effective education of the heirs of the family business, which are based on national traditions, Chinese philosophy, as well as human values.Conclusions. These activities are useful not only for Chinese entrepreneurs who are building a family business, but also for ordinary parents of any society. High-quality training for future generations: their upbringing and education, ultimately ensures the social sustainability of society.

Succession in Family Business: Sharing the Cognitive Map

Succession is the ultimate test of success reflected as sustainability in business, when managing business changes hands from a family leader to a non-family leader. This means when a family business is owned by the family but managed by a non-family member. This article explores the possibility of approaching succession process using design thinking—an approach based on appreciative inquiry. By identifying the various dimensions in which succession in family business takes place, this article introduces to business leaders a strength-based approach for creating an imagined future, that is satisfactory and acceptable after the incumbent phase out and successor phase in take place. The article emphasizes on creating of a singular image—a shared cognitive map for succession. When business leaders wilfully design a singular image, they have shared cognitive map that facilitates succession. The article provides guiding questions for design thinking in succession in family business.

MOTIVATION OF FRESH GRADUATE STUDENTS WHO LEAVE A FAMILY BUSINESS

The purpose of this study is to examine some of the main reasons for successor from family businesses who do not want to continue their family business. This study uses qualitative methods using the approach of in-depth interviews with respondents. The research respondents were fresh graduates who did not want to continue the family business that had been initiated by a large family of respondents. The findings in this study prove that respondents prefer to avoid conflicts with relatives or the absence of succession in family business. Career opportunities from other companies are another factor in making decisions to leave the family business.

Succession in Family Business Through Authentic Leadership

Family businesses are the kind of organizations that are characterized by overlapping systems of ownership, management, governance, and family values. In family firms, the family is the main asset of the business, and family members are strictly bound to the firm. Due to the dominance of a specific family, the success of the company is closely linked to the proper administration of the duality in the industry, the existence of family and business simultaneously. This fact distinguishes family firms from other companies. Furthermore, managerial and ownership priorities of the owner family are maintained through intergenerational succession. And, the existence of multiple stakeholders and their conflicting demands necessitate a transparent and authentic leadership approach in this delicate process. In this chapter, it is proposed that in family firms, intergenerational succession is more convenient and less painful, in case an authentic leader who gives importance to high levels of awareness, transparency, and morality is in power.

An Integrative Conceptual Framework for Sustainable Successions in Family Businesses: The Case of Taiwan

Family businesses have long been one of the mainstream business models in developing countries. The smooth succession of control in family businesses is the key to their sustainable development. However, compared with other companies, succession in family business has demonstrated unique complexity, which also affects the development of the business. The paper is based on a review of the existing literature, starting from the theory of family business succession and combining with grounded theory. After that, we conducted field interviews of experts, coding the key factors affecting succession in family businesses in Taiwan. Finally, we explored the considerations and implications of the succession for inheritance planning. The results of this study show that consideration of succession in family businesses involves a multi-dimensional and complex decision-making process. Among the key considerations, it is found that corporate characteristics, family capital and niche inheritance are the most important without consideration of whether the continuation of the business after succession will be doomed to failure. In addition, the family relationship of affection and trust and commitment between both predecessor and successor are important factors that cannot be ignored, especially in a rapidly changing competitive market environment.