Passing on the legacy: exploring the dynamics of succession in family businesses in Pakistan

Abstract

PurposeBy taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.Design/methodology/approachThe study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.FindingsThe findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.Research limitations/implicationsThe study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.Originality/valueExploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.

Balancing innovation and exploitation in the fourth industrial revolution: Role of intellectual capital and technology absorptive capacity

“…(1999) suggests that structural/organizational capital is understood as the set of rules, structures, routines and standardized processes followed by the organization to help build an organizational culture with a similar frame of reference for all employees. It is exploitation in nature, and employees in the organization intend to solve their problems based on the decisions that were previously proved useful ( Chang et al., al.,2020 ). On the other hand, for Eisenhardt and Sull (2001), the notion of structural/organizational capital is less connected to rules, procedures and common style of work ( Daft and Weick, 1984 ) and provides new opportunities and autonomy for individual and group work in order to explore and experiment with the new styles of work environment and the way in which they unify the work.…”

Taking the international route: Investigating the impact of socioemotional wealth dimensions on family firm performance via internationalisation

“…According to Hofstede's cultural dimensions, Pakistan is a short-term-oriented society and does not engage in long-term planning (Hofstede & Minkov, 2010). The study of Chang et al (2020) also confirmed that most family firms do not have any formal succession plan devised. Since this dimension is concerned with preserving capital and business for the succeeding generation, we can conclude that it is not relevant in the context of internationalisation.…”

“…Possible reasons could be the different contexts of the study. Most family firms in Pakistan are still in their second generation with children under eighteen (Chang et al, 2020). According to Hofstede's cultural dimensions, Pakistan is a short-term-oriented society and does not engage in long-term planning (Hofstede & Minkov, 2010).…”

“…Similarly, family firm owner-managers can leverage positive dimensions such as I and B to increase internationalisation strategies. This can be done by promoting an entrepreneurial legacy (Chang et al, 2020) and utilizing social network approach. Lastly, we conclude that SEW is not inherently negative.…”

Female entrepreneurship in family business: bibliographic analysis

“…, 2022). In a male-dominated society, women are expected to take care of their households and not participate in business affairs (Chang et al. , 2021; Rodríguez-Modroño et al.…”