The role of management accounting in family business succession

Abstract

Family business succession is considered inherent to family businesses and represents a critical process that is generally characterised by resistance to change. This study aims to investigate the role of management accounting systems (MASs) in family business succession, in order to understand how changes in MASs during the succession across different family generations can help the succession process itself, facilitating the rise of the new leader, supporting changes, and reducing resistance to them. The research adopts a case study approach, focusing on organizational routines and their changes, at the same time taking into account the socioemotional wealth of the family firm. Evidence from the study shows the strategic role of MAS in managing the succession process, through the implementation of new routines and rules in helping the decision-making process and in achieving the firm's leadership.

The Romanian Family Businesses Philosophy for Performance and Sustainability

“…For the survival of a family business, they need to secure a new generation of leadership, and management accounting plays an important role by teaching young generations the internal control procedures [70] and the succession process [71]. For efficient management, any company relies on accountants and auditors.…”

La administración de costos y la atención al cliente en el desempeño empresarial: un caso de la industria de la confección

“…Los sistemas de administración de costos se definen como subsistemas de información administrativa que integran datos (Chenhall, 2003) basados en herramientas de planeación, evaluación y control (Chartered Institute of Management Accountants, 2017;Ismail et al, 2010), que apoyan el proceso de identificar, medir, analizar, interpretar y comunicar información (Bisogno & Vaia, 2017) exacta y confiable (Ismail et al, 2010), con el fin de asegurar el uso apropiado de los recursos, identificar los cambios en la industria y supervisar las estrategias de los competidores (Bisogno & Vaia, 2017;Panjaitan et al, 2018).…”

Determining the contributory factors to successful succession and post-succession performance of family-owned SMEs in South Eastern Nigeria

“…A succession process is said to be successful when the successor completely takes over the management and/or ownership of the enterprise (Fan, Wong & Zhang, 2012). Despite the resistance to and challenges of succession (Bisogno & Vaia, 2017;Chiang & Yu, 2018), the intergenerational transfer of management and/or ownership can influence the overall performance of a family firm either positively or negatively (Molly et al, 2010). These influences are reflected in the financial and non-financial performance of the firm.…”