Thepostponed succession:an investigation of the obstacles hindering business transmission planning in family firms

Abstract

PurposeDrawing on the theory of planned behaviour, this research aims to investigate systemically if and how incumbents and successors share attitudes, social norms and perception of the feasibility of their business succession.Design/methodology/approachQualitative research carried out on a group of small Italian family firms (N = 10).FindingsThis study provides evidence of background mechanisms (attitudes, social norms and perception of feasibility) affecting the implementation of business succession planning in family SMEs. Moreover, this study provides further evidence supporting the role of social norms in strategic decision-making processes within family firms.Research limitations/implicationsFindings from this study contribute to current literature in multiple ways and have several research implications.Practical implicationsThis study highlights that it is more appropriate to adopt a systemic rather than an individualistic approach in investigating/managing business succession.Social implicationsFamily firms are the most widespread type of firms in the world; thus, a systematic failure in business transmission represents a prominent socioeconomical problem for policy-makers and institutions.Originality/valueThis study leads to further developments in exploring business succession from a psychological point of view. Findings also highlight the limits of how a theory applied in order to predict individual behaviour can provide insight into collective behaviour involving a family.

Family firm succession in tourism and hospitality: an ethnographic case study approach

“…This methodological novelty offers some vital insights into the complex ensemble of emotions and actions involved in the inter-family succession covering pre-, during, and post-succession phases in its naturalistic setting. This level of understanding is often missing in family business literature in general (Ferrari, 2021;Leiß & Zehrer, 2018) and tourism and hospitality context in particular (López -Chávez et al, 2020).…”

“…Business succession is a process, not an event (Ferrari, 2021). It goes through several distinct phases including initiation, integration, joint reign and then withdrawal (Ferrari, 2021; Le Breton-Miller et al , 2004).…”

“…Business succession is a process, not an event (Ferrari, 2021). It goes through several distinct phases including initiation, integration, joint reign and then withdrawal (Ferrari, 2021; Le Breton-Miller et al , 2004). Unique characteristics of a family business, such as informal rules and procedures, lack of clear communication structures and informal decision-making structures, have made its succession process different from non-family business in significant ways (Dalpiaz et al , 2014).…”

Factors Influencing the Succession Planning in the Education Sector: A Systematic Literature Review

“…The perfect match between the organization and the individual is essential, in case any differences occur, then it not only impacts the individual but the firm and their employees are also affected by such a decision. The study shows that family firms look for more relationship-oriented successors while non-family firms look for more formal methods of succession planning (Ferrari, 2020).…”

The willing successor: an exploration of grit and situational cues in family firms

“…For this process to be successfully completed, there must be a willing and able successor to take control of the family firm. The importance of this successor has garnered considerable interest within the family firm literature (Blumentritt, 2016; Ferrari, 2021; Parker, 2016; Tang and Hussin, 2020). Yet, it is still unclear what underlying factors motivate the potential successor to experience the behavioral intentions of taking control of the family firm (see Figure 1).…”