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Succession Planning in Family-Owned Business Evidence From an Emerging Economy

Succession Planning in Family-Owned Business Evidence From an Emerging Economy
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Author(s): Muhammad Arslan (KIMEP University, Kazakhstan)
Copyright: 2022
Pages: 25
Source title: Research Anthology on Strategies for Maintaining Successful Family Firms
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-6684-3550-2.ch022

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Abstract

Family-owned businesses (FOBs) play an important role in the economy of a country through the creation of jobs. However, most FOBs lack strategies regarding succession planning in both developed and developing economies. This study explores the strategies that are used by FOBs to prepare future leaders. Drawing on qualitative research design, this study employed a multiple case study approach and selected 13 cases by employing a purposive sampling technique from the FOBs of Pakistan. Semi-structured interviews were conducted with the successors of FOBs. The findings reveal that succession planning is pivotal for the development of business and the successful transition of FOB from one generation to another. Most of the respondents fully understand the importance of succession planning for the sustainability of the business. However, in some cases, socioemotional aspects of generational succession planning require strategies that concurrently focus on successor suitability, the consensus of the family, mode of transition, leadership, and challenges faced by the FOBs.

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