Preparation in Family Business Succession for Female Heirs

Authors

  • Warangkana Kittikornwattana Graduate School of Management and Innovation, King Mongkut’s University of Technology Thonburi
  • Rangsan Kiatpanont Graduate School of Management and Innovation, King Mongkut's University of Technology Thonburi

Keywords:

Family Business Succession, Female Heirs, Preparation, Business Planning

Abstract

This research aims to study the planning and preparation for family business succession for female heirs. This study employs in-depth interviews with business transferors and female heirs in family businesses to gather information on experiences, preparations, and challenges encountered in the succession process. Family businesses are vital in driving the economy, and the succession from one generation to the next involves complexities and challenges.

The findings reveal that the preparation for female heirs begins with their exposure and familiarity with the business from a young age, involving small assignments and sharing the business's history with the heirs. Support and teaching of essential business skills are crucial. Transferors should create an environment conducive to learning and experimentation and provide opportunities for heirs to meet with partners and stakeholders to build networks and business understanding. When it comes time to transfer leadership, transferors should gradually reduce their roles and increase the decision-making authority of the heirs, providing advice as consultants to help the heirs confidently face challenges.

This research highlights effective planning and preparation strategies for family business succession, emphasizing support, open communication, and giving heirs decision-making roles. Such preparation ensures a stable and sustainable family business succession.

References

Arambhan, P. A., and Seetharaman, A. (2022). Perceptions of succession planning in family-owned businesses. Journal of the International Council for Small Business, 3(4), 337-349. https://doi.org/10.1080/26437015.2022.2098079

Boonrugsa, S. (2014). A Causal Model for Financial Performance of Family Business After Transgeneration In Thailand. Graduate College of Management, Sripatum University.

Chua, J. H., Chrisman, J. J., and Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship theory and practice, 23(4), 19-39. https://doi.org/10.1177/104225879902300402

Davis, J. A., Hampton, M. M., and Lansberg, I. (1997). Generation to generation: Life cycles of the family business. Harvard Business Press.

Firm family business. (2024). “Family Structure” and “Family Business Management Structure”. Retrieved from https://firmfamilybusiness.com/roots-of-family-problems-part-2/#:~:text=%E0%B8

Harveston, P. D., Davis, P. S., and Lyden, J. A. (1997). Succession planning in family business: The impact of owner gender. Family Business Review, 10(4), 373-396. https://doi.org/10.1111/j.1741-6248.1997.00373.x

Le Breton–Miller, I., Miller, D., and Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship theory and practice, 28(4), 305-328.

Lingas, K. (2013). Family businesses and the gender of entrepreneurship. Journal of Innovation and Entrepreneurship, 2, 1-7.

Longenecker, J. G., and Schoen, J. E. (1978). Management succession in the family business. Journal of Small Business Management (pre-1986), 16(000003), 1.

MGR Online. (2024). Do & Don't and Family Business Succession Plan. Retrieved from https://mgronline.com/business/detail/9670000017857

Morris, M. H., Williams, R. O., Allen, J. A., and Avila, R. A. (1997). Correlates of success in family business transitions. Journal of business venturing, 12(5), 385-401. https://doi.org/10.1016/S0883-9026(97)00010-4

Moser, T. (2021). Organizational resilience of family firms a literature re-view. Journal of Administrative and Business Studies, 7(1), 43-56. https://doi.org/10.20474/jabs-7.1.4

Pengpang, T., Supichayangkul, S. and Wiroonratch, B. (2016). Successful Succession of Family Business in Gems and Jewelry Industry. Journal of Business, Innovation and Sustainability, 11(2), 10-24.

Phuvakeereevivat, A. (2014). Family Businesses Sexuality in Thai Society. Graduate School, Rangsit University.

PwC Thailand. (2021). Global Family Business Survey Report (Thailand Edition). Retrieved from https://www.pwc.com/th/en/services/EPB/family-business-survey-2021-th.html

Sharma, P., Chrisman, J. J., Pablo, A. L., and Chua, J. H. (2001). Determinants of initial satisfaction with the succession process in family firms: A conceptual model. Entrepreneurship Theory and Practice, 25(3), 17-36. https://doi.org/10.1177/104225870102500302

Tagiuri, R., and Davis, J. (1982). Three-circle model of the family business system.

Thairath Money. (2567). Why do “family businesses” in Thailand pass on to third-generation heirs, with only 12% remaining?. Retrieved from https://www.thairath.co.th/money/business_marketing/marketing/2779431

Thansettakij. (2024). Family Business Thailand. Retrieved from https://www.thansettakij.com/columnist/designing-business/586994

Wang, C. (2010). Daughter exclusion in family business succession: A review of the literature. Journal of family and economic issues, 31, 475-484. https://doi.org/10.1007/S10834-010-9230-3

Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.

Downloads

Published

2024-08-29

How to Cite

Kittikornwattana, W., & Kiatpanont, R. (2024). Preparation in Family Business Succession for Female Heirs. Journal for Strategy and Enterprise Competitiveness, 3(8), 44–61. Retrieved from https://so07.tci-thaijo.org/index.php/STECOJournal/article/view/5422

Issue

Section

Research Article