Psychological aspects of succession in family business management

Abstract

PurposeFamily firms appear to be an attractive topic in a number of research areas. Probably the most important topic is still the succession process combined with possible hurdles and gaps. This paper aims to focus on the special variable of the psychological dimension. It attempts to summarize findings and implications as well as suggestions for where potential research gaps are.Design/methodology/approachThe paper is based on a two‐stage research design. The first step is a literature review. All articles published in the Family Business Review (FBR) between 1997 and 2011 were collected and analysed regarding their topics, findings, and implications. As a second step, this knowledge has been applied to conduct a thorough literature analysis on psychological aspects of succession.FindingsPsychological aspects are often used together with other constructs. The authors strongly recommend handling them as an individualized, highly complex topic, even if social, political, and other aspects are often mixed with psychological aspects and therefore difficult to discuss and separate. A separation of these factors will help researchers present findings in a much clearer way.Research limitations/implicationsThe main limitation of the article lies in the methodology itself, as the literature review solely concentrates on empirical papers that exclusively investigate psychological aspects with regard to succession. Nevertheless, the aim was to elaborate a focused psychological field model in terms of succession. Likewise, critical aspects considering the family business system have been taken into consideration. Finally, a literature review is commonly seen as a post‐work “dead body”. However, the implications show a clear, directed focus within family business research. The authors recommend an increase in the number of concisely formulated research questions instead of generic approaches.Practical implicationsBusinesses should closely heed three imperative problem areas (individual, interpersonal and organizational) as well as the stage in which conflicts arise (preparation, transfer/takeover, and continuation), if they want to be successful in the succession process.Originality/valueThe paper offers an overview of the limited number of existing articles and their implications that address the psychological aspects of the succession process. Furthermore, the psychological issues identified that cause conflicts during succession are consolidated and categorized.

Tracing the Roots of Constructive Conflict Management in Family Firms

“…The time orientation of family firms is also distinctive because pursuing continuity over generations entails transiting along different generational stages in which family needs and dynamics change (Lansberg, ). In these transitions, conflict is expected, and conflict management is critical (Filser, Kraus, & Märk, ).…”

A Family Business Success Map to Enhance the Sustainability of a Multi-Generational Family Business

“…Succession planning is one of the most critical issues a family business faces as this is the key to the survival of the family business from generation to generation [14,15]. [16] Indicated that this transfer of family business ownership and management is a complex and challenging process which arises from the different personal, business, and financial objectives to be achieved.…”

“…[16] Indicated that this transfer of family business ownership and management is a complex and challenging process which arises from the different personal, business, and financial objectives to be achieved. [14] Showed that family business founders' reluctance to plan for succession is due to the founders' strong sense of attachment to the business, fear of retirement and death, and a lack of other interests. [3] Argued that many family businesses do not have a next generation successor available.…”

A power perspective on knowledge transfer in internal succession of small family businesses

“…Above all it is emotionally challenging for the predecessor. This is particularly the case when the decline of health or the aging process is a contributing factor, as it often is the case in family business succession (Filser, Kraus, and Märk, 2013;Zacher, Schmitt, and Gielnik, 2012). The predecessor's rendering of formal power and authority however is the prerequisite to fully transferring both tacit and explicit knowledge to the successor.…”