Internal managerial succession in family companies
DOI:
https://doi.org/10.15678/IER.2019.0502.05Abstract
Objective: The objective of the article is to present internal managerial business succession model, which can be applied in family companies in a situation when a typical family succession (by children or other family members) is not possible or not desirable.
Research Design & Methods: The authorial model has been developed in the ENTERtransfer project (INTERREG Central Europe programme) and extended during the pilot actions with the entrepreneurs and the representatives of the local and regional authorities in the Mazovian region in Poland between October and November 2018.
Findings: Based on the feedback from the target groups, the internal managerial business succession model has been extended and improved. However, it turned out that depending on the size of the company, the entrepreneurs indicated two basic succession models. SMEs strongly preferred a typical family succession (by family members), whereas the representatives of big companies opted for the internal managerial business succession model, which is related to the involvement of an external person into the company management.
Contribution & Value Added: Although the model has been developed in the international project, it is directed mainly to the companies from the Mazovian region in Poland as the project objective is to develop the outputs only for the regional level. The core input into the development of the model was the target group of the ENTERtransfer project: the entrepreneurs and the representatives of different types of authorities. That means that the model has not been developed only by the authors based on the literature, but mainly with the practical support of interested bodies in this area.
Keywords
Business succession, managerial succession, family companies, ENTERtransfer project, entrepreneurship
Author Biography
Ludmiła Walaszczyk
Ph.D. (2015) in Management from the Warsaw University of Technology. Since 2005 she has worked in the Strategy Innovation Department in the Institute for Sustainable Technologies – National Research Institute In Radom, since April 2019 - LUKASIEWICZ Research Network - Institute for Sustainable Technologies. Her scientific interests concern business models aspects and the relations between the entrepreneurs and local and regional authorities.
Beata Belina
Ph.D. (2004) in Management from John Paul II Catholic University of Lublin. Since 1986 she has worked in the Strategy Innovation Department in the Institute for Sustainable Technologies – National Research Institute in Radom, since April 2019 - LUKASIEWICZ Research Network - Institute for Sustainable Technologies. Her scientific interests concern entrepreneurship, social innovation and cultural aspects in the multi-cultural organisations.
References
- Amran, N.A., & Ahmad, A.C. (2010). Family succession and firm performance among Malaysian companies. International Journal of Business and Social Science, 1(2), 193-203.
- Banalieva, E.D., & Eddleston, K.A. (2011). Home-region focus and performance of family firms: the role of family vs non-family leaders. Journal of International Business Studies, 42(8), 1060-1072. https://doi.org/10.1057/jibs.2011.28
- Barach, J.A., & Ganitsky, J.B. (1995). Successful succession in family business. Family Business Review, 8(2), 31-155. https://doi.org/10.1111/j.1741-6248.1995.00131.x
- Benavides-Velasco, C., Quintana-García, C., & Guzmán-Parra, V. (2013). Trends in family business research. Small Business Economics, 40(1), 41-57.
- Boyd, B., Botero, I.C., & Fediuk, T.A. (2014). Incumbent decisions about succession transitions in family Firms: A conceptual model. International Journal Financial Studies, 2, 335-358. https://doi.org/10.3390/ijfs2040335
- Budhiraja, S., & Pathak, K. (2018). Dynamics of succession planning for Indian family-owned businesses: learning from successful organizations. Human Resource Management International Digest, 26(4), 31-33, https://doi.org/10.1108/hrmid-11-2017-0167.
- Budziak, T. (2014). Esencja sukcesji. Gliwice: Wydawnictwo Helion.
- Budziak, T. (2012). Sukcesja w rodzinie biznesowej Spojrzenie praktyczne. Warszawa:
- Wydawnictwo Poltext.
- Casillas, J.C., Mereno-Cerdan, A.L., & Lopez, C. (2015). The family business in Spain. Barcelona: Instituto de la Empresa Familiar.
- Chiniara, W., & Omari, Y. (2017). The ‘Triple S’ family business insurance policy, Deloitte. Retrieved on March 28.2019 from https://www2.deloitte.com/iq/en/pages/about-deloitte/articles/The-only-certainty-is/triple-s-family-business-insurance-policy.html#.
- Churchill, N.C., & Hatten, K.J. (1987). Not-market-based transfers of wealth and power: A Research Framework for family businesses. American Journal of Small Business, 11(3), 51-64. https://doi.org/10.1111/j.1741-6248.1997.00053.x
- Daspit, J.J., Holt, D.T., Chrisman, J.J., & Long, R.G. (2016). Examining family firm succession from a social exchange perspective: a multiphase, multi-stakeholder review. Family Business Review, 29(1), 44-64. https://doi.org/10.1177/0894486515599688
- Davis, S.M. (1968). Entrepreneurial Succession. Administrative Science Quarterly. Special Issue on Organisations and Social Development, 13(3), 196-416. https://doi.org/10.2307/2391050
- De Alwis, A.C. (2016). Incumbents influence on family business succession process. European Journal of Business and Management, 8(13), 96-105.
- Fleming, Q. (2000). Tajniki przetrwania firmy rodzinnej. Gliwice: Wydawnictwo One Press Small Business.
- Gabriel, A., & Bitsch, V. (2018). Impacts of succession in family business: A systemic approach for understanding dynamic effects in horticultural retail companies in Germany. Journal of Small Business and Enterprise Development, 26(3), 304-324. https://doi.org/10.1108/jsbed-01-2018-0030
- Georgiou, T., & Vrontis, D. (2013). Wine sector development: A conceptual framework toward succession effectiveness in family wineries. Journal of Transnational Management, 18(4), 246-272. https://doi.org/10.1080/15475778.2013.840489
- Ghee, W.Y., Ibrahim, M.D., & Abdul-Halim, H. (2015). Family business succession planning: Unleashing the key factors of business performance. Asian Academic of Management Journal, 20(2), 103-126.
- Hadryś-Nowak, A. (2018). When successor becomes the leader of international family business? – a case study from Poland. International Entrepreneurship | Przedsiębiorczość Międzynarodowa, 4(3), 189-203.
- Klein, S.B. (2004). Family Businesses in Germany: Significance and Structure. Family Business Review, 13(3), 157-181. https://doi.org/10.1111/j.1741-6248.2000.00157.x
- Kowalewska, A. (2009). Badanie firm rodzinnych. Raport końcowy. Warsaw: Polish Agency of Entrepreneurship Development.
- Lambrecht, J. (2005). Multigenerational transition in family businesses: A new explanatory model. Family Business Review, 18(4), 267-282. https://doi.org/10.1111/j.1741-6248.2005.00048.x
- Lewandowska, A., Więcek-Janka, E., Hadryś-Nowak, A., Wojewoda M., & Tylczyński, Ł. (2016). Firma to marka: Raport z badania przeprowadzonego w ramach projektu Statystyka firm rodzinnych. Poznań: Wydawnictwo Instytut Biznesu Rodzinnego.
- Longenecker, J.G., & Schoen, J.E. (1978). Management succession in the family business, Journal of Small Business Management, 16, 1-6.
- Matthews, C.H., Moore, T.W., & Fialko, A.S. (1999). Succession in the family firm: A cognitive categorization perspective, Family Business Review, 12(1999), 159-169. https://doi.org/10.1111/j.1741-6248.1999.00159.x
- Naldi, L., Nordqvist, M., Sjoberg, K., & Wiklund, J. (2007). Entrepreneurial orientation, risk taking, and performance in family firms. Family Business Review, 20(1), 33-47. https://doi.org/10.1111/j.1741-6248.2007.00082.x
- Niemczal, Ł. (2015). Etapy procesu sukcesji przedsiębiorstw rodzinnych: przegląd literatury. International Entrepreneurship | Przedsiębiorczość Międzynarodowa, 1(1), 31-42.
- Nordqvist, M., Wennberg, K., & Hellerstedt, K. (2013). An entrepreneurial process perspective on succession in family firms. Small Business Economics, 40(4), 1087-1122. https://doi.org/10.1007/s11187-012-9466-4
- Perry, J.T., Kirk Ring, J., & Broberg, J.C. (2015). Which type of advisors do family businesses trust most? An exploratory application of socioemotional selectivity theory. Family Business Review, 28(3), 211-226. https://doi.org/10.1177/0894486514538652
- Ruggieri R., Pozzi M., & Ripamonti S. (2014). Italian Family Business Cultures Involved
- in the Generational Change. Europe’s Journal of Psychology, 10(1), 79-103. https://doi.org/10.5964/ejop.v10i1.625
- Safin, K., & Pluta, J. (2014). Strategie sukcesyjne polskich przedsiębiorstw rodzinnych. Analiza wstępnych wyników badań, Przedsiębiorczość i Zarządzanie, Part I: Firmy Rodzinne – współczesne nurty badań i praktyki zarządzania, 15(7), 23-36.
- Santora, J.C., & Sarros, J.C. (2008). Founders, leaders, and organizational life cycles: the choice is easy – learn or fail!. Development and Learning in Organizations: An International Journal, 22(3), 12-15. https://doi.org/10.1108/14777280810861767.
- Schlepphorst, S., & Moog, P. (2014). Left in a dark: Family successors’ requirement profiles in the family business succession process. Journal of Family Business Strategy, 5(4), 358-371. https://doi.org/10.1016/j.jfbs.2014.08.004
- Sharma, P., Chrisman, J.J., Pablo, A.L., & Chua, J.H. (2001). Determinants of initial satisfaction with the succession process in family firms: A conceptual model. Entrepreneurship Theory and Practice, 25(3), 17-36. https://doi.org/10.1177/104225870102500302
- Stavrou, E.T. (1996). Intergenerational transitions in family enterprise: Factors influencing offspring intentions to seek employment in the family business, Doctorial dissertation, George Washington University.
- Stavrou, E. (2007). Intergenerational transitions of family enterprises: Factors influencing offspring intentions to seek employment in the family business. Washington: George Washington University.
- Stavrou, E.T., Kleanthous, T., & Anastasiou, T. (2005). Leadership personality and firm culture during hereditary transitions in family firms: model development and empirical investigation. Journal of Small Business Management, 43(2), 187-206. https://doi.org/10.1111/j.1540-627x.2005.00133.x
- Strzelecka, R. (2011). Strategiczne znaczenie sukcesji dla długookresowej perspektywy rozwoju firmy rodzinnej w Polsce. Przedsiębiorczość i Zarządzanie, XII(7), 129-136.
- Suess, J. (2014). Family governance: literature review and the development of a conceptual model. Journal of Family Business Strategy, 5(2), 138-155. https://doi.org/10.1016/j.jfbs.2014.02.001
- Wach, K., & Surdej, A. (2010). Przedsiębiorstwa rodzinne wobec wyzwań sukcesji. Warszawa: Wydawnictwo Difin.
- Wang, Y., Pei, R., & Liu, Y. (2014). The evolution of family business in China: An institutional perspective. International Journal of Management Practice, 7(2), 89-107. https://doi.org/10.1504/ijmp.2014.061472