Preparation in Family Business Succession for Female Heirs
Keywords:
Family Business Succession, Female Heirs, Preparation, Business PlanningAbstract
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
How to Cite
Issue
Section
License
Copyright (c) 2024 Journal for Strategy and Enterprise Competitiveness
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The opinions appearing in the content of articles of Journal for strategy and enterprise competitiveness. It is the opinion and responsibility of the article author. It is not the opinion and responsibility of the Center for strategy and enterprise competitiveness, King Mongkut's University of Technology Thonburi
Articles, information, content and images, etc., in the Journal for strategy and enterprise competitiveness. It is the exclusive copyright of the Center for strategy and enterprise competitiveness, King Mongkut's University of Technology Thonburi. If an individual or entity wants to distribute all or part of the content or for any action must obtain written permission from the Center for Strategy and enterprise Competitiveness, King Mongkut's University of Technology Thonburi.