This article explores the characteristics of Lebanese family businesses using a sample of 114 firms and tests various propositions regarding the relationships between correlates of effective succession planning and longevity. Successful family businesses in Lebanon exhibit a variety of responses to the variables that are conducive to success. The findings indicate that older firms are more inclined to use a participatory decision-making process, as evidenced by more reliance on advisory boards. A significantly larger proportion of older firms relative to younger ones holds family meetings and has formal redemption and liquidity plans. Firms in our sample are characterized by liberal attitudes: more than 75% consider female ownership acceptable and more than two-thirds of the firms respond positively to potential female CEOs.
Get full access to this article
View all access options for this article.
References
1.
Astrachan, J., & Kolenko, T. (1994). A neglected factor explaining family business success: Human resource practices. Family Business Review , 7(3), 251-262.
2.
Barach, J., & Ganitsky, J.B. (1995). Successful succession in family business. Family Business Review, 8, 131- 155.
3.
Beckhard, R., & Dyer, W.G. (1983). Managing continuity in the family-owned business . Organizational Dynamics, 12(1), 5-12.
4.
Christensen, C. (1953). Management succession in small and growing enterprises . Boston, MA: Division of Research, Harvard Business School.
5.
Chua, J.H., Chrisman, J.J., & Sharma, P. (2003). Succession and nonsuccession concerns of family firms and agency relationship with nonfamily managers. Family Business Review, 16(2), 89-107.
6.
Doescher, W.F. (1993). How to shake the family tree. D & B Reports July/August, 10-11.
7.
Dunn, B., & Hughes, M. (1995). Family businesses in the Netherlands. Family Business Review, 8, 267-293.
8.
Fenn, D. (1994). Are your kids good enough to run your business . Inc., August, 36-48.
9.
Gudmundson, D., Tower, C.B., & Hartman, E.A. (2001). Strategic implications of data gathering activities in small firms: A comparison between family and nonfamily firms. Journal of Small Business Strategy, 12, 19-29.
10.
Handler, W. (1992). The family venture. In W. Sallmon & H. Stevenson (Eds.), The entrepreneurial venture (pp. 311-321). Boston, MA : Harvard Business Review School.
11.
Handler, W., & Kram, K.E. (1988). Succession in family firms; the problem of resistance . Family Business Review, 1(4), 361-381.
12.
Hyatt, J. (1992). Fathers and sons. Inc., May, 51-62.
13.
Jaffe, D.T. (1992). Working with the ones you love. Berkeley, CA: Conari Press.
14.
Kets de Vries, M.F.R. (1993). The dynamics of family controlled firms: The good news and the bad news. Organizational Dynamics, 21, 59-71. Klein, S. (2000). Family business in Germany: Significance and structure .Family Business Review,13,157- 182.
15.
Lank, A.G. (2001). Determinants of the longevity of the family business . Presented at the 12th Annual World Conference of the Family Business Network. Rome Italy.
16.
Lansberg, I., & Astrachan, J.H. (1994). Influence of family relationships on succession planning and training: The importance of mediating factors. Family Business Review, 7(1), 39-59.
17.
Leon-Guerrero, A.Y., McCann, J.E., & Haley, J.D. (1998). A study of practice utilization in family businesses . Family Business Review, 11(2), 107-120.
18.
Morris, M., Williams, R., Allen, J., & Avila, R. (1997). Correlates of success in family business transitions . Journal of Business Venturing, 12, 385-401.
19.
Mossholder, K.W., Settoon, R.P., Armenakis, A.A., & Harris, S.G. (2000). Emotion during organizational transformations: An interactive model of survivor reactions. Group and Organization Management, 25(3), 220-243.
20.
Osborne, R.L. (1991). Second generation entrepreneurs: Passing the baton in a privately held company. Management Decision, 29(1), 42-46.
21.
RoyNat Inc. (1998). Who'll step up when you step down?Newsletter, Fall.
22.
Rue, L.W., & Ibrahim, N.A. (1996). The status of planning in smaller family owned business. Family Business Review, 9(1), 29-43.
23.
Seymour, K. (1993). Intergenerational relationships in the family firm: The effect on leadership succession. Family Business Review, 6, 263-281.
24.
Sharma, P., Chrisman, J.J., & Chua, J.H. (2003a). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18(5), 667-687.
25.
Sharma, P., Chrisman, J.J., & Chua, J.H. (2003b). Succession planning as planned behavior: Some empirical results. Family Business Review, 16(1), 1-15.
26.
Sharma, P., Chua, J.H., & Chrisman, J.J. (2000). Perceptions about the extent of succession planning in Canadian family firms. Canadian Journal of Administrative Sciences, 17, 233-244.
27.
Sorenson, R. (1999). Conflict management strategies used by successful family businesses. Family Business Review, 12(4), 325-341.
28.
Trow, D.B. (1961). Executive succession in small companies. Administrative Science Quarterly, 6, 228-239.
29.
Ward, J. (1987). Keeping the family business healthy: How to plan for continuing growth, profitability and family leadership. San Francisco, CA: Jossey-Bass.
30.
Ward, T.L., & Arnoff, C.E. (1993). In-laws in the family business. Nations Business, 81, 32-33.
