Identities of the incumbent and the successor in the family business succession: Review and prospects

Abstract

IntroductionThe cognition and motivation of family business incumbents and the successors will directly influence succession behavior, yet they face identity challenges during succession due to the intersection of family and firm context, and their ability to overcome identity challenges will determine the success of the succession. However, as studies on their identity are fragmented and lack systematicity, there is a need to assess the relevant literature.MethodsDrawing from social identity theory (SIT) and role identity theory (RIT), this article adopts a systematic literature review approach to analyze 99 SSCI-indexed articles to explore family business succession from an identity perspective.ResultsThe article finds that the focus on the self-concept of the incumbent and the successor shifts from group identification to role identity perception and multi-roles, and succession behaviors are based on identity perception.DiscussionThis article summarizes a knowledge framework of the antecedents, connotations, and behavioral consequences of identity perception, revealing that family business succession from an identity perspective exhibits psychological and multidisciplinary characteristics, highlighting iterative and mutual features. Based on identity theories and succession research, this article proposes future directions from the research topics, research methods, and theoretical perspectives within the existing knowledge framework, such as cross-cultural and diachronic analysis, as well as from the theoretical perspectives of family, personality development, and pedagogy.

When Does S(he) Plan to Retire? Antecedents of Retirement Age In Family Businesses

“…These scholars show how the family's resources, norms, attitudes, and values influence the recognition of entrepreneurial opportunities that can potentially trigger changes in the family. Moreover, recent research highlights how the identity of the incumbent can better explain their emotions, cognition, and behavior to succession (Li et al, 2023;Radu-Lefebvre et al, 2021). In summary, retirement intentions precede succession planning, which means the incumbent leader of a family business will initiate and control the succession process.…”

“…In the case of family businesses, individual characteristics of the incumbent (such as age, gender, generation) and satisfaction with previous succession have been found to affect the propensity for succession planning and the willingness of the incumbent to step aside (Decker et al, 2016), as these factors influence an incumbent's goal adjustment capacity (Gagne et al, 2011). Incumbent's identity also plays a role in explaining emotions, cognition, and behavior during succession (Li et al, 2023;Radu-Lefebvre et al, 2021). This means that incumbent preparation for retirement impacts their expectations about succession.…”

The influence of family dynamics on business performance: does effective leadership matter?

“…For instance, Saidat et al (2022) found family ownership had a negative impact on performance whereas, Guedes et al (2022) established that it had a positive impact in the long term. Family business performance is impacted by the work done by incumbents and successors (Li et al, 2023). In addition, Miroshnychenko et al (2023), points out that family involvement significantly impacts positively on the business' financial performance.…”

“…According to systems theory, in a family business is a system of business and family overlaps, that links one another as a system (Poza, 2007). Through long-term investment and altruistic behaviour, a distinct, valuable, resource combination that blends family and commercial systems can be established and passed down for future generations (Li et al ., 2023). The socio-emotional wealth (SEW) perspective, which is based on stakeholder management theory has of late drawn interest in the field of family business (Acquaah, 2016).…”

“…Williams et al . (2013), notes that, “approximately 66% of family businesses fail during the second generation transfer, with only 15% surviving the third generation transfer.” Intergenerational connections are hampered by family engagement, which is the overlapping of familial and professional relationships (Li et al ., 2023). Conversely, Miroshnychenko et al .…”