Passing the Torch: Perceived Risks and Opportunities in Family Business Succession
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Sophia Maier
Abstract
Based on a qualitative case study of a traditional Austrian family business, we investigate which risks and opportunities arise from the succession. Our results indicate that risks are due to emotional ties to the family business, inadequate know-how transfer, family-internal conflicts, and the inability to hand over the company. Opportunities are seen in the integration of external consultants, the involvement of employees, the existence of an emergency plan and a structured succession plan, and an early transfer of know-how and innovation combined with tradition. Concerning gender, the risks are seen primarily in a possible lack of acceptance of the female successor and the reconciliation of family and career. In particular, the increased social competence, the avoidance of power struggles, and the increased conscientiousness were mentioned as opportunities due the gender of the successors. The conclusions drawn from the results have numerous implications for future research (e.g., cross-country and cross-industry comparisons) and corporate practice (e.g., a guide for succession, necessity of structured succession planning).
Abstract
Based on a qualitative case study of a traditional Austrian family business, we investigate which risks and opportunities arise from the succession. Our results indicate that risks are due to emotional ties to the family business, inadequate know-how transfer, family-internal conflicts, and the inability to hand over the company. Opportunities are seen in the integration of external consultants, the involvement of employees, the existence of an emergency plan and a structured succession plan, and an early transfer of know-how and innovation combined with tradition. Concerning gender, the risks are seen primarily in a possible lack of acceptance of the female successor and the reconciliation of family and career. In particular, the increased social competence, the avoidance of power struggles, and the increased conscientiousness were mentioned as opportunities due the gender of the successors. The conclusions drawn from the results have numerous implications for future research (e.g., cross-country and cross-industry comparisons) and corporate practice (e.g., a guide for succession, necessity of structured succession planning).
Chapters in this book
- Frontmatter I
- Contents V
- Preface VII
- Strategy Development in the Light of Radical Change: A Perspective on the Evolution and Revolution of Family Businesses 1
- The Importance of VUCA and BANI in Developing Sustainable and Long-term Oriented Strategies in Family Businesses 27
- Employee Resilient Behavior and Its Leadership Prerequisites: Strategies for Founder Generation Family Firms 53
- The Impact of Family Ownership on SME Resilience: A Three-Circle Model Analysis 73
- Implications of Company Succession on Resilience of Small and Medium Size Companies 85
- Passing the Torch: Perceived Risks and Opportunities in Family Business Succession 103
- Convenience Study of Criminal Deviance in the Entrepreneurial Family Business: Husband as Lawyer and Wife as Accountant in the Law Firm 119
- The Adaptive Capacity of Tourism Family Firms – An Owners’ Perspective on Risk Resilience 147
- Corporate Social Responsibility during the COVID-19 Pandemic: Learnings from Austrian Family Businesses 169
- Resilience beyond Metrics: How Hidden Resources in Small Family Firms Challenge the Resource-Based View 183
- The Impact of AI-Induced Downsizing on Family Businesses 201
- List of Contributors
- Index
Chapters in this book
- Frontmatter I
- Contents V
- Preface VII
- Strategy Development in the Light of Radical Change: A Perspective on the Evolution and Revolution of Family Businesses 1
- The Importance of VUCA and BANI in Developing Sustainable and Long-term Oriented Strategies in Family Businesses 27
- Employee Resilient Behavior and Its Leadership Prerequisites: Strategies for Founder Generation Family Firms 53
- The Impact of Family Ownership on SME Resilience: A Three-Circle Model Analysis 73
- Implications of Company Succession on Resilience of Small and Medium Size Companies 85
- Passing the Torch: Perceived Risks and Opportunities in Family Business Succession 103
- Convenience Study of Criminal Deviance in the Entrepreneurial Family Business: Husband as Lawyer and Wife as Accountant in the Law Firm 119
- The Adaptive Capacity of Tourism Family Firms – An Owners’ Perspective on Risk Resilience 147
- Corporate Social Responsibility during the COVID-19 Pandemic: Learnings from Austrian Family Businesses 169
- Resilience beyond Metrics: How Hidden Resources in Small Family Firms Challenge the Resource-Based View 183
- The Impact of AI-Induced Downsizing on Family Businesses 201
- List of Contributors
- Index
