Intra-family succession insights: the presence of millennial cohort successors

Abstract

PurposeThe purpose of this study is to shed some light on an important phenomenon – how and why intra-family succession may change if millennial cohorts are considered as successors. Specifically, it aims to explore the superordinate themes that support the success of intra-family succession from perspective of two different cohort successors (X and millennial).Design/methodology/approachAn interpretative phenomenological analysis (IPA) was adopted for detailed structural analysis of in-depth interview as it aims to explore meaning of participants' experiences. A total of ten individuals participated in the study.FindingsSeventeen superordinate themes emerged from participants' personal statements and experiences. The themes are grouped into four aspects: namely, characteristics of predecessor and successor, succession process, firm and family and succession output. These aspects were found to be different between X and millennial cohort successors. They then form an empirical model of intra-family succession from both perspectives.Research limitations/implicationsThis study enriches the theory of family firm by considering generational effect of successors on intra-family succession.Practical implicationsAs millennial cohort successors prefer to go directly into business (experiential learning) and are driven by non-material motives (passion-driven), predecessors are expected to utilize them in the process of nurturing and development.Originality/valueThis study considers the role of generation cohort in supporting the success of intra-family succession especially in relation to the characteristics of millennial cohort successors that have been shown to differ from that of X cohort.

Strategic transitions: unraveling the impact of socioemotional wealth and generational cohorts on succession planning in family SMEs

“…Furthermore, this research sheds new light on how CEOs from different generational cohorts perceive and engage in succession planning (Magrelli et al, 2022a). The characteristics and motivations of gen-X and millennial successors were found to be very different by Hidayati et al (2020). Interestingly, in this study, the SEW's moderating effect is potentiated in family SMEs helmed by CEOs from the silent generation or baby boomers, compared to their younger millennial and gen-X counterparts (Hypothesis 4a and 4b).…”

“…They are likely to reduce as the firm transitions from one generational cohort to the next (Schulze et al, 2003;Gersick et al, 1997). The generational cohorts will also have a distinctive impact on dynastic succession and will likely change from one cohort to another (Hidayati et al, 2020). Therefore, the authors hypothesize:…”

Succession Intention in Continuing Family Business in Indonesia during the Covid-19 Pandemic

“…When a family business grows, the numbers of family members and business units also grow accordingly, and in the long run, the complexity of succession and future direction problems will eventually increase and become more convoluted (Liu, 2020). Thus, the factors of heir and next-generation family leader will be of utmost importance in every family business situation (Bozer et al, 2017;Filser et al, 2013;Hari Magnadi & Surya Perdhana, 2021;Hidayati et al, 2020;Ip & Jacobs, 2006).…”

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“…Consequently, the own founding versus joining in the family business conceptualization cannot fully illustrate the career choices available to offspring of business families. Evidence suggests that next-generation family business members who engage in entrepreneurial initiatives (Cruz and Nordqvist, 2012) are largely a millennial cohort (Hidayati et al , 2020) who would prefer more autonomy at work and are motivated by progression, especially in the use of technology (Parry and Urwin, 2011). Through the family embeddedness perspective (Aldrich and Cliff, 2003), this study sought to examine the antecedents of the corporate venturing (CV) choice by the next-generation family members.…”