IDEAS home Printed from https://ideas.repec.org/a/acg/managt/v9y2021i1p8-16.html
   My bibliography  Save this article

A Study on Succession Planning, Prospective Successor Selection, Transfer of Idiosyncratic Firm Knowledge in Family Owned Businesses of Hyderabad

Author

Listed:
  • Manchala Seema

    (Amity Global Business School)

  • Syed Sayf Ali

    (Amazon India)

Abstract

This study seeks to gain a better understanding of how the succession planning is undertaken in family owned businesses, most preferred qualities in the prospective successor and the transfer of tacit idiosyncratic firm knowledge from one generation to the next generation. The fact that family businesses contribution to the Indian economy is highly significant as well as the fact that most of the family businesses do not survive beyond three generations makes the study important. This study was conducted by distributing a quantitative survey containing numerous close ended questions to the family business owners, potential successors and successors. The survey asked respondents to explain how succession planning takes place in their firm, the most preferred qualities in the prospective successor and the mode of transfer of tacit idiosyncratic firm knowledge from one generation to another. The survey results provided insight into many important factors of succession planning such as the prospective successor being chosen with consensus of the all the family members, the process of succession being well communicated in the business and possessing leadership values is the most preferred quality sought in a successor. Learning by observing is the most preferred mode of transfer of tacit knowledge from one generation to another.

Suggested Citation

  • Manchala Seema & Syed Sayf Ali, 2021. "A Study on Succession Planning, Prospective Successor Selection, Transfer of Idiosyncratic Firm Knowledge in Family Owned Businesses of Hyderabad," Shanlax International Journal of Management, Shanlax Journals, vol. 9(1), pages 8-16, July.
    • Handle: RePEc:acg:managt:v:9:y:2021:i:1:p:8-16
    DOI: 10.34293/management.v9i1.4101
    as

    Download full text from publisher

    File URL: http://www.shanlaxjournals.in/journals/index.php/management/article/view/4101
    Download Restriction: no
    File URL: http://www.shanlaxjournals.in/journals/index.php/management/article/view/4101/3322
    Download Restriction: no
    File URL: https://libkey.io/10.34293/management.v9i1.4101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ronald C. Anderson & David M. Reeb, 2003. "Founding‐Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1328, June.
    2. Saulo Dubard Barbosa & Jill Kickul & Brett Smith, 2008. "The road less intended : Integrating entrepreneurial cognition and risk in entrepreneurship education," Post-Print hal-02311841, HAL.
    3. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    4. Bjuggren, Per-Olof & Sund, Lars-Goran, 2002. "A Transaction Cost Rationale for Transition of the Firm within the Family," Small Business Economics, Springer, vol. 19(2), pages 123-133, September.
    5. Monder Ram & Trevor Jones & Tahir Abbas & Balihar Sanghera, 2002. "Ethnic Minority Enterprise in its Urban Context: South Asian Restuarants in Birmingham," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(1), pages 24-40, March.
    6. Astrachan, Joseph H., 2003. "Commentary on the special issue: the emergence of a field," Journal of Business Venturing, Elsevier, vol. 18(5), pages 567-572, September.
    7. Saulo D. Barbosa & Jill Kickul & Brett R. Smith, 2008. "The Road Less Intended: Integrating Entrepreneurial Cognition And Risk In Entrepreneurship Education," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 411-439.
    8. Ronald C. Anderson & David M. Reeb, 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1327, June.
    9. Ikujiro Nonaka & Ryoko Toyama, 2002. "A firm as a dialectical being: towards a dynamic theory of a firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(5), pages 995-1009, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kihun Kim & Zulfiquer Ali Haider & Zhenyu Wu & Junsheng Dou, 2020. "Corporate Social Performance of Family Firms: A Place-Based Perspective in the Context of Layoffs," Journal of Business Ethics, Springer, vol. 167(2), pages 235-252, November.
    2. Akinbola Amos Olufemi & Alaka Nureni Sanusi & Kowo Solomon Akpoviroro & Adeyemo Adesola Alex, 2020. "Family Business Operations and Sequel of Internationalisation in Nigeria," Economics and Business, Sciendo, vol. 34(1), pages 126-138, February.
    3. Johan Wiklund & Mattias Nordqvist & Karin Hellerstedt & Miriam Bird, 2013. "Internal versus External Ownership Transition in Family Firms: An Embeddedness Perspective," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1319-1340, November.
    4. Guadalupe del Carmen Briano Turrent & Lázaro Rodríguez Ariza & Karen Watkins Fassler, 2022. "Family CEOs and CSR performance in Ibero-American family firms," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(4), pages 1-16, Octubre -.
    5. Brian Distelberg & Adrian Blow, 2010. "The Role of Values and Unity in Family Businesses," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 427-441, December.
    6. Dawson, Alexandra, 2011. "Private equity investment decisions in family firms: The role of human resources and agency costs," Journal of Business Venturing, Elsevier, vol. 26(2), pages 189-199, March.
    7. Patrizia Fanasch & Bernd Frick, 2021. "Filling Big Shoes: CEO and COO Succession Planning in Family Businesses," Working Papers Dissertations 69, Paderborn University, Faculty of Business Administration and Economics.
    8. Johan Eklund & Johanna Palmberg & Daniel Wiberg, 2013. "Inherited corporate control and returns on investment," Small Business Economics, Springer, vol. 41(2), pages 419-431, August.
    9. Nhat Minh Tran & Thu Thuy Nguyen & Thi Phuong Linh Nguyen & Anh Trong Vu & Thi Thanh Hoa Phan & Thi Hong Tham Nguyen & Ngoc Diep Do & Anh Tuan Phan, 2022. "Female Managers and Corruption in SMEs: A Comparison Between Family and Nonfamily SMEs in Vietnam," SAGE Open, , vol. 12(1), pages 21582440221, March.
    10. Eric Gedajlovic & Michael Carney, 2010. "Markets, Hierarchies, and Families: Toward a Transaction Cost Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 34(6), pages 1145-1172, November.
    11. DODERO ORTIZ DE ZEVALLOS Gino Felix & CLEMENTE-ALMENDROS José Antonio & BAHAMONDES ROSADO María Emilia, 2023. "The Covid-19 Crisis And The Financial Impact On Family Firms," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(2), pages 86-108, August.
    12. Maria Claudia Angel Ferrero & Véronique Bessière, 2016. "From Lab to Venture: Cognitive Factors Influencing Researchers' Decision to Start a Venture," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 101-131, June.
    13. Xueru Yang & Jun Li & Laura J. Stanley & Franz W. Kellermanns & Xinchun Li, 2020. "How family firm characteristics affect internationalization of Chinese family SMEs," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 417-448, June.
    14. Chen, Shuping & Chen, Xia & Cheng, Qiang & Shevlin, Terry, 2010. "Are family firms more tax aggressive than non-family firms?," Journal of Financial Economics, Elsevier, vol. 95(1), pages 41-61, January.
    15. Franz Kellermanns & Kimberly Eddleston & Ravi Sarathy & Fran Murphy, 2012. "Innovativeness in family firms: a family influence perspective," Small Business Economics, Springer, vol. 38(1), pages 85-101, January.
    16. Cai, Guilong & Xie, Sujuan & Xu, Yue & Zeng, Yamin & Zhang, Junsheng, 2019. "Ultimate parent's board reform and controlling shareholder entrenchment: Evidence from a quasi-natural experiment in China," Emerging Markets Review, Elsevier, vol. 38(C), pages 389-403.
    17. Brandts, Jordi & Solà, Carles, 2010. "Personal relations and their effect on behavior in an organizational setting: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 73(2), pages 246-253, February.
    18. Randolph, Robert V. & Alexander, Benjamin N. & Debicki, Bart J. & Zajkowski, Robert, 2019. "Untangling non-economic objectives in family & non-family SMEs: A goal systems approach," Journal of Business Research, Elsevier, vol. 98(C), pages 317-327.
    19. Ahsan Habib & Mabel D' Costa & Hedy Jiaying Huang & Md. Borhan Uddin Bhuiyan & Li Sun, 2020. "Determinants and consequences of financial distress: review of the empirical literature," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(S1), pages 1023-1075, April.
    20. Ebrahim, Ahmed & Fattah, Tarek Abdel, 2015. "Corporate governance and initial compliance with IFRS in emerging markets: The case of income tax accounting in Egypt," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 46-60.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:acg:managt:v:9:y:2021:i:1:p:8-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: S.Lakshmanan (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.