Dancing to two tunes: Multi-entity roles in the family business succession process

Abstract

While some studies of family business focus on the succession process, very few have tried to understand it as an interactive, dynamic social process. The multi-entity roles that family business members play simultaneously during the social process have been largely ignored. The findings of this longitudinal ethnographic study highlight the inconsistency between the expressed attitudes, perceptions, plans and actual behaviours of family business members. In-depth discourse analysis and observation shed light on their underlying values, needs and hidden agendas, which have a major impact on the operation, success or failure of the business. This study has major implications for business founders and successors to understand their own roles in the succession process. It also has practical value for professional managers to understand the challenges and opportunities in the process of family business succession. It is important for policymakers to understand why family business succession fails, so that appropriate public policies can be introduced to support family businesses.