Trusted advisors in a family business's succession-planning process—An agency perspective

Michel, Alexandra; Kammerlander, Nadine

doi:10.1016/j.jfbs.2014.10.005

Cited by 70 publications

(95 citation statements)

References 78 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, in this study, we refer to the incumbent as the successor. The person trained by the successor in the succession process is the potential successor (Boyd, Botero & Fediuk, 2014;Cabrera-Suárez & Martín-Santana, 2012;Hania, 2012;Michel & Kammerlander, 2015;Miller, 2015;Wang, 2010). A potential successor is a family member that has the necessary traits and willingness to potentially take over the family business but has not or did not assume leadership of the business.…”

Section: Succession Planningmentioning

confidence: 99%

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

Agbim

2019

IER

View full text Add to dashboard Cite

This study seeks to determine the contributory factors to successful succession and post-succession performance. And the role of these factors in the post-succession financial and non-financial performance of family-owned SMEs in South Eastern Nigeria. Research Design & Methods: The adopted quantitative methodology is interview. In each of the purposively selected 25 family-owned SMEs, the incumbent, a sibling of the incumbent and a top level manager were interviewed. In all, 75 respondents were interviewed. The transcribed interviews were subjected to thematic content analysis. Findings: The contributory factors to successful succession are the characteristics of succession planning, the incumbent, the potential successor, and the family-owned SME. The factors that contribute to the post-succession performance are the culture of making succession planning a continuous process, and the characteristics of the incumbent and the family-owned SME. These factors ensure that children of the incumbent in the SME become more active so as to be selected as potential successors. Contribution & Value Added: The study identified the contributory factors to successful succession and post-succession performance of the family-owned SMEs. To achieve successful succession and post-succession performance, the incumbents should inculcate the characteristics of these factors into their potential successors. Also, these characteristics should be made part of the culture of the family-owned SMEs. Article type: research paper

show abstract

Section: Succession Planningmentioning

confidence: 99%

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

Agbim

2019

IER

View full text Add to dashboard Cite

show abstract

“…Succession can be understood as the transmission of both the ownership and the control of the organisation between two generations. In the case of family firms, the transmission of the family leadership from the incumbent to the next generation successor occurs through succession (28,29,30,31). The succession process brings important changes to family businesses, such as adjustments to family firms' management, and the ownership structure (32,26,30).…”

Section: A Conceptual Framework Cultural Stereotype and Succession Imentioning

confidence: 99%

Gender Preference and Succession of Family Businesses in Jos, Plateau State, Nigeria

Paulina¹,

I²

2019

World Journal of Innovative Research

View full text Add to dashboard Cite

Succession in family business is an important factor for business continuity and most of the family business successors are males which shows that leadership is lopsided against females in Jos, Nigeria. This study examined gender preference and succession of family business in Jos, Plateau State. It focused on the perception about the succession process in family businesses regarding gender issues and why daughters may feel discriminated for succeeding their parents in a family business. It examined the influence of cultural stereotype and trust on family business succession with focal point among small and medium enterprises (SMEs) in Jos metropolis, Plateau State. Structured questionnaire schedule was administered and data were obtained from 220 SMEs using a cross-sectional survey of descriptive research design. Data from the questionnaire were analysed using multiple regression in establishing relationship among the variables. The findings indicated that cultural stereotype and trust has significant influence on the choice of a successor in family business. It was recommended that the ability to manage family business should be paramount in choosing a successor rather than to stereotype daughters on the basis of culture, as that will determine whether the business will survive.

show abstract

“…Through mediation activities, for example, the advisor might be able to improve the development of a successor, a particularly difficult task in family-owned firms (Salvato and Corbetta 2013), to enhance the commitment of and relationships between the actors involved (Distelberg and Schwarz 2015) by unearthing and alleviating their latent emotions (Bertschi-Michel, Kammerlander and Strike, 2019) and to facilitate mediated sensemaking, thereby allowing for new perspectives (Strike and Rerup 2016). In contrast, an advisor could also lead to an increase in agency costs, for example, if s/he provides biased advice that might result in conflicts (Michel and Kammerlander 2015). Therefore, the presence of an objective, well-qualified advisor is important, as it may affect the satisfaction with the advisor (Powell and Eddleston 2017;Sharma et al 2001;Sharma et al 2003) and postsuccession firm performance (Dekker, Lybaert, Steijvers and Depaire 2015;Molly et al 2010;Naldi, Chirico, Kellermanns and Campopiano 2015;Sirmon and Hitt 2003)-two variables that might affect the successor's ability and willingness to continue in the business and eventually firm survival (Barbera and Hasso 2013;Habbershon, Williams and MacMillan 2003).…”

Section: Introductionmentioning

confidence: 99%

“…First, the type of advisor, meaning whether s/he is formally engaged (a firm-and family-external person who is paid for his/her advisor services) or informally engaged (a person who is either a family member or has a close relationship with key actors and is not officially hired and paid; see Strike 2012) (Perry et al 2015;Strike 2012). Second, we examine the duration of the advisor's process involvement, meaning whether s/he is involved in all stages of the succession process or only in specific parts of it (e.g., in the form of shorter, temporarily limited engagements to solve a certain problem) (Sharma, Chrisman and Chua 1997;Michel & Kammerlander, 2015). These characteristics are important because, for instance, a formal advisor that is involved in all process steps of succession is perceived to facilitate communication, coordination, and information among all actors (Michel and Kammerlander 2015).…”

Section: Introductionmentioning

confidence: 99%

Succession in family-owned SMEs: the impact of advisors

2019

Self Cite

View full text Add to dashboard Cite

We theorize and empirically confirm the positive influence of an advisor's tertius iungens behavior on individual-and firm-level succession-related factors. Furthermore, we explore the moderating influence of two central advisor characteristics, namely, their type and process involvement. We find that the relationship between an advisor's tertius iungens behavior and an incumbent's and a successor's satisfaction with the advisor tends to be stronger when the advisor is of formal (versus informal) nature. Furthermore, the relationship between an advisor's tertius iungens behavior and firm performance is stronger when the advisor is involved in the full succession process, compared to being only involved in parts of it. Our study thus contributes to the literature on advising and family-owned SME succession by introducing the tertius iungens concept as a crucial advisor behavior and by highlighting how important advisor characteristics support the satisfaction with the advisor and post-succession firm performance.

show abstract

Trusted advisors in a family business's succession-planning process—An agency perspective

Cited by 70 publications

References 78 publications

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

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

Gender Preference and Succession of Family Businesses in Jos, Plateau State, Nigeria

Succession in family-owned SMEs: the impact of advisors

Contact Info

Product

Resources

About