Strategies for Successful Family-Owned Business

Zaki, Achmad; Rahayu, Mintarti; Susilowati, Christin

doi:10.21776/ub.jam.2018.016.02.04

Cited by 3 publications

(4 citation statements)

References 2 publications

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“…This may imply that, for good performance and sustainability of family-owned SMEs as stipulated in the leadership succession model, founders of family-owned SMEs should select their successors before they depart from the business. Similarly, as argued by scholars (Zaki et al , 2018; Hasliza et al , 2015; Kaunda and Nkhoma, 2013; Blumentritt et al , 2012), business founders selecting their successors likely ensures continuity of the business and eliminates possible challenges such as conflicts in ownership of the business, conflicts in decision making and conflicts in business management. Furthermore, such a process guarantees smooth running, sustainability and good performance of family businesses in the absence of the founder.…”

Section: Resultsmentioning

confidence: 86%

“…This process not only gives room for selected successors to be known to other family members and business partners but also exposes them early on to the business’ internal and external environments (Bozer et al , 2017). This process is expected to increase the successor’s commitment and credibility, and minimizes chances of conflicts in management and or ownership of the business, which is a stumbling block in performance of family-owned SMEs (Zaki et al , 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

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Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Kiwia

Bengesi

Ndyetabula

2019

JFBM

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Purpose The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs). Design/methodology/approach The quantitative research approach and a cross-sectional research design were employed. The probability sampling technique was used to draw 219 respondents from the sampling frame. A structured questionnaire was used for data collection. Descriptive statistics and independent samples t-tests were used for data analysis. Findings It was revealed that most of family-owned SMEs founders in the study area had mechanisms for succession planning for their businesses. Also, there is a difference in business performance when successors are selected and prepared by business founders compared to when they are selected and prepared by other family members. Successors selected and prepared by business founders performed better in business than successors who were selected and prepared by other family members. Research limitations/implications This study employed a quantitative research paradigm methodology, which limits deep discussion with respondents. Future studies could consider using a qualitative research paradigm methodology. Originality/value The paper presents succession planning process experience in family-owned SMEs in the study area, specifically the existence of succession planning in family-owned SMEs. It also shows a difference in business performance between the two investigated groups. This paper will benefit business founders, family business successors and researchers.

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Section: Resultsmentioning

confidence: 86%

Section: Literature Reviewmentioning

confidence: 99%

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Kiwia

Bengesi

Ndyetabula

2019

JFBM

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“…A planned succession would entail training, education, development of relevant capabilities and attitudinal traits and motivation of the successor to join the family business (Ghee et al, 2015). These factors and processes would result in better alignment of the successor with the stakeholders and reduce conflicts, resulting in better firm performance (Zaki et al, 2018). Therefore, the authors hypothesize:…”

Section: Formal Succession Planning and Firm Performancementioning

confidence: 99%

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

Bang,

Calabrò,

Valentino

2023

IJEBR

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PurposeThe complexity of succession in family firms is multifaceted and can sometimes lead to turbulence. While structured succession strategies offer a roadmap for smoother transitions, intergenerational differences in family small and medium-sized enterprises (SMEs) can lead to varied interpretations of an effective succession blueprint. This study synergizes the strategic entrepreneurship framework with the socioemotional wealth (SEW) perspective to probe into how formalized succession planning impacts performance in family SMEs. Furthermore, it delves into the mediating role of succession satisfaction, especially in family firms characterized by pronounced SEW and helmed by CEOs from different generational cohorts.Design/methodology/approachEmploying a comprehensive dataset from 1,833 global family businesses, this research utilizes bootstrapping regression models to discern the intertwined effects of mediator and moderator variables and their statistical significance.FindingsThe main findings suggest that succession satisfaction does matter for a good succession process and that succession plans work only in family firms with a high degree of SEW and that are led by older family CEOs (e.g. baby boomers).Practical implicationsThe results offer fresh perspectives on succession processes, with a particular focus on how to improve the satisfaction of millennial family CEOs.Originality/valueThe study uniquely combines strategic entrepreneurship and SEW to offer a holistic view of succession planning, highlighting satisfaction’s mediating role and SEW’s moderating influence. Additionally, it pioneers the incorporation of generational cohorts into the succession discourse.

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“…This process is expected to increase the successor's commitment and credibility. It diminishes the chances of conflicts in management and ownership of the business, which is a stumbling block in the performance of family-owned SMEs (Zaki et al, 2018).…”

Section: The Framework For Family-owned Manufacturing Business Succes...mentioning

confidence: 99%

A Critical Investigation of Factors Influencing Ugandan Family-Owned Manufacturing Businesses’ Performance

Kwoba

Ebewo

2022

jmer

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Objective: This study investigated the role of resources, capabilities, entrepreneurial orientation, and stewardship on the performance of family-owned manufacturing businesses in Uganda to establish how a firm can identify the rare and valuable resources that simultaneously enable better performance levels and competitive advantage. Research Design & Methods: A qualitative study with 15 participants from six family manufacturing businesses using interviews. The transcribed data was analysed and grouped into themes. Findings: General management skills, financial management, marketing management, and technology benefits are key resources and capabilities that enhance the smooth operations of the family manufacturing businesses and play are pivotal in achieving better performance and sustainability. Secondly, it was found that proactiveness, risk management, and continuous evaluation and appraisals of their performance were practised among family-owned manufacturing businesses. Thirdly, decision-making systems and lines of authority, enabling them to constantly analyse market trends and know about competitors were in place. Lastly, although there are supporting programmes for the manufacturing industries to help family-owned manufacturing businesses acquire start-up resources and import raw materials, there still needs to be more consistency in implementing such support programmes in Uganda. Implications & Recommendations: Family business owners should embrace proactivity, risk management, and continuous evaluation and appraisals of business performance. Furthermore, a review of current government policies, particularly those about industry financing and labour management, is recommended. Contribution & Value Added: The study was the first attempt to examine the performance of family-owned manufacturing businesses in Uganda. An improved framework was developed for their entrepreneurial success.

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Strategies for Successful Family-Owned Business

Cited by 3 publications

References 2 publications

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

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

A Critical Investigation of Factors Influencing Ugandan Family-Owned Manufacturing Businesses’ Performance

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