Journal of Small Business and Entrepreneurship Development

Succession Challenges in Family Businesses from the First to the Second Generation
Petru Sandu, Natalie Nye

Abstract
The purpose of this research is to investigate how family businesses pursue leadership succession from the first to the second generation and how the transition process is continued after the transfer of leadership. The research is focused on family-based leadership succession. The objective is to identify the key challenges of leadership succession and the best practices involved by family firms. Interviews with leadership successors of ten family businesses who inherited the leadership from the founders of the business were conducted. The data analysis revealed seven main leadership transfer challenges that the companies faced and their responses to these challenges. The lessons on how these companies were able to overcome the challenges are important information not only for family businesses who are heading toward succession but also for practitioners such as family business centers and family business consultants. The findings contribute toward a better understanding of the intricate family dynamics and the unique context of family business in the succession process.

Full Text: PDF     DOI: 10.15640/jsbed.v8n1a5