Intra-family dynamics and succession planning in family businesses in South Africa: the daughter as a potential successor

Abstract

PurposeLiterature considers the succession process to be successful when both the continuity of the business and harmony within the family are preserved. This study empirically investigates intra-family dynamics with regard to daughters as potential successors in family businesses.Design/methodology/approachThe study takes place in South Africa where family businesses represent a significant amount of all listed businesses on the Johannesburg Stock Exchange. A structured survey instrument is used to collect primary data from family businesses in South Africa. The study hypotheses are statistically tested using regression analyses.FindingsResults highlight the importance of the business context (BC), intra-family cohesion (IFC), intra-family adaptability (IFA) as well as the parent-daughter relationship (PDR) in successful daughter succession planning (SP). An important insight which emerges from the findings is the extent to which a harmonious business environment is conducive in accommodating the daughter as a successor to the business.Practical implicationsFamily business owners need to be aware of the often conflicting pressures that daughters face as potential successors. Evidence-based and fit for purpose to the South African family BC processes and directives must be formulated that guide the implementation of SP. The provision of training specifically focused on gender bias issues and women empowerment programmes in family business is recommended.Originality/valueInvestigating theoretical and practical problems related to daughters in SP in South Africa is important considering that firms in African countries in general tend to be poorly managed.

Are There Gender Differences in Sustainable Entrepreneurship Indicators Amongst SMEs in South Africa? Application of MANOVA

“…However, the issue of finance has received contradictory research results. While Faccio et al (2016) argued that female managers would yield better result, Urban and Nonkwelo (2020) opined that on many occasions, the conditions for accessing finance favour males more than female entrepreneurs. Thus, ownership of business activities is skewed towards male ownership.…”

“…One important social factor in the literature is the issue of women with dual roles as managers and owners of business enterprises, a factor that was researched as having a direct relationship with entrepreneurship sustainability and successfulness in the world of entrepreneurism. In many countries of the world especially in Africa, women are still viewed as the weaker gender to such an extent that economic activisms in the areas of business ownership, management and entrepreneurial entrepreneurism put them at great disadvantage (Naidu & Chand 2015, Garcial et al 2019and Urban & Nonkwelo 2020. They further observed that culture as a social factor favoured male ownership, performance and management and consequently entrepreneurship sustainability.…”

“…Finance was shown as a major predicament to female ownership of small and medium scale enterprises in Gambia as against male entrepreneurship participation (Fall 2020). Urban and Nonkwelo (2020) concluded that females are always at a disadvantage when it comes to business ownership and management in South Africa. Brijlal, Naicker and Peters (2013) linked business environment in South Africa to its productivity and discovered that the environment influences performance and that the performance is a positive function of gender ownership.…”

“…Further, (Faccio et al 2016) argued that female dominated managers of business enterprises would yield better results than the male counterparts because females are more prudent in financial matters than male entrepreneurs. Yet, Urban and Nonkwelo (2020) opined that on many occasions, the conditions for accessing finance, favour males more than female entrepreneurs such that male participation and ownership of business activities are skewed towards male ownership. In a nutshell, opinions differ on the level and extent to which these trio factors account for gender disparity of business ownership and management.…”

Succession Planning as a Critical Management Imperative: a Systematic Review

“…Key: Su -Survey; I -Interviews; SD -Secondary Data; FG -Focus Group; O -Observation; D -Document Analysis the articles (20 out of 64) relied on a mixed methods approach utilizing some combination of the six distinct data collection methods. Surveys alone were the most popular data collection method utilized with 26 of the 64 articles reviewed using this strategy (e.g., Kiwia, 2019;Umans et al, 2020;Urban & Nonkwelo, 2020). Interviews alone were the next most common method, with 15 of the 64 articles adopting this strategy (Goldman, 2020;Okoro & Iheanachor, 2020;Arslan, 2021).…”