Succession in Women-Owned Family Businesses: A Case Study

Abstract

Succession is one of the most studied aspects of family businesses. However, although it is estimated that women own more than 33% of such organizations, to our knowledge, few studies focus on succession in them. Our objective is to explore and understand the process of succession in family‐owned businesses run by women. This paper presents the results of a case study of four women who own and run family businesses in the manufacturing sector and who have shared the management of their organizations with their successors for at least three years.

Trusted advisors in a family business's succession-planning process—An agency perspective

“…In particular, based on previous experience with succession cases and interpersonal skills, he or she can promote the communication among all involved parties and thereby reduce informational asymmetries. Moreover, due to their education, training, and experience, advisors can provide important and objective information on the succession process, especially they can point out when a specific change is needed and the succession process has to be started (Lane et al, 2006;Swartz, 1989;Upton et al, 1993) due to objectively assessable criteria such as age or health of the incumbent (Cadieux, Lorrain, & Hugron, 2002;DeTienne, 2010;Dyer & Handler, 1994). Additionally, advisors can help the incumbents dispose of their vague human fears regarding the unknown future of the firm and themselves: Advisors do so by providing comprehensive information on potential exit choices as well as the specifics of the succession process and by closely coaching the incumbent-measures that help the incumbent to get ready for the succession and overcome the reluctance to step aside (Brun de Pontet et al, 2007;De Massis et al, 2008;Salvato & Corbetta, 2013;Strike, 2012) and thereby align the goals of the incumbent with those of other family members as well as the potential successor candidate.…”

Unexpected Succession: When Children Return to Take Over the Family Business

“…). Heirs know that they will be able to wield significant power in the family firm (Cadieux, Lorrain, and Hugron ). (3) Sharma and Irving () carried out useful research on the commitment of successors.…”

Entrepreneurial Risk Taking of Private Family Firms

“…A commonly used technique to solve this is the use of instrumental variables (e.g., Wooldridge, 2002). The second variable ("years worked for the firm") has been chosen as an instrument because family members usually start in the family firm at a young age doing summer jobs or part-time jobs, which makes it likely that family CEOs have been working longer in the family firm than nonfamily CEOs (Cadieux, Lorrain, & Hugron, 2002;Dyer, 2006). Based on results of previous studies, we selected two instrumental variables ("higher education" and "years worked for the family firm") that are likely to meet these conditions and that have some dissimilarities (Bascle, 2008).…”