Family Business Succession: Appropriation Risk and Choice of Successor

Lee, Khai Sheang; Lim, Guan Hua; Lim, Wei Shi

doi:10.2307/30040754

Cited by 163 publications

(222 citation statements)

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“…For example, Royer and colleagues [5] argue that Japanese family firms may have a longer life span because they have a higher concern for long-term orientation and they have a preference for internal successor [56]. Thus, the Japanese culture promotes the idea of transforming individuals into family insiders to enable an internal succession to occur [55]. Yan and Sorenson [59] investigated the effect Confucian values on family business succession and stressed the importance of examining values across cultures to identify underlying intent or principles in a certain culture.…”

Section: Contextual Factors Influencing Evaluations Of Succession Tramentioning

confidence: 99%

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Boyd

Botero

Fediuk³

2014

IJFS

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Abstract:In the family business literature, succession research has focused on the family member as they enter the leadership role or on the different issues that affect the succession process. Although researchers have acknowledged that succession in family businesses is "punctuated" by decision making events, less attention has been given to understanding how incumbents make decisions about ownership and management transitions. In an effort to continue to understand the succession process it is important to understand how incumbents make decisions about the type of transitions they intend to engage in (i.e., intra-family succession, out of family succession, or no succession). Building on the theory of planned behavior and the socioemotional wealth framework (SEW), this manuscript presents a conceptual framework to understand the factors that influence succession transitions and the role that contextual factors can play in this decision-making process. We present theory driven propositions and discuss the implications for understanding and evaluation of the succession process.

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Section: Contextual Factors Influencing Evaluations Of Succession Tramentioning

confidence: 99%

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Boyd

Botero

Fediuk³

2014

IJFS

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“…Interestingly, these results show that hiring a highly identified family manager is even more beneficial for the firm when its business model is based on an idiosyncratic bundle of resources and knowledge, a common situation for family firms (Chrisman, Chua, & Steier, 2005;Habbershon, 2006;Lee, Lim, & Lim, 2003). Besides being positively identified with the firm, the family manager is expected to have superior knowledge about the firm's business model by virtue of his previous involvement with it.…”

Section: Figure 2 Relationship For Various Levels Of High Output Uncmentioning

confidence: 93%

Identity in Family Firms: A Theoretical Analysis of Incentives and Contracts

Pagliarussi

Costa

2017

BAR, Braz. Adm. Rev.

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We developed a principal-agent model that coherently and parsimoniously explains previous findings from research on executive compensation in family firms. We introduce organizational identification in the model in order to capture the effect of family firms' distinctive characteristics on the agent's behavior. After describing the optimal incentive contract under moral hazard, we show that the dispersion in the optimal wage profile decreases as the level of organizational identification of the agent increases. Moreover, we show that agency costs decrease as the level of organizational identification of the agent increases. Our results imply that hiring a strongly identified family manager will result in greater expected wealth to the principal and better risk sharing between the parties. We further analyze two interrelated factors that may drive changes in contract parameters: the degree of altruism in the family firm, and the level of collectivism of the society in which the firm is located.

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“…Researches based on the resource-based view of the firm suggest the importance of transferring the tacit embedded knowledge, networks and social capital across generations. Due to their long tenures, family firm leaders possess a significant amount of idiosyncratic or tacit knowledge related to the firm (Lee et al, 2003). It has been suggested that the performance of the next generation is likely to be based on the effectiveness with which the knowledge, and social networks, are transferred across generations (Cabrera-Suárez et al, 2001;Steier, 2001).…”

Section: Succession Planning As One Of the Most Important Factors Of mentioning

confidence: 99%

Family Businesses: The Extensiveness of Succession Problems and Possible Solutions

Duh¹

2012

Entrepreneurship - Gender, Geographies and Social Context

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Family Business Succession: Appropriation Risk and Choice of Successor

Cited by 163 publications

References 0 publications

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Incumbent Decisions about Succession Transitions in Family Firms: A Conceptual Model

Identity in Family Firms: A Theoretical Analysis of Incentives and Contracts

Family Businesses: The Extensiveness of Succession Problems and Possible Solutions

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