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Pre- and post-succession governance philosophies in entrepreneurial family firms

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  • Steier, Lloyd P.
  • Miller, Danny

Abstract

Most studies of succession in family firms concentrate on the succession event and/or on the periods immediately prior or subsequent to that event. We wished to look back at a much longer time period in order to more fully characterize the governance philosophies both before and after succession as well as the related transformations between these periods. Our qualitative study of 13 successions in entrepreneurial family firms reveals changes in the governance roster as well as in the goals, roles, political structures, behavior and climate associated with the principals of these organizations, and based on these we suggest several testable propositions. We conclude with an integrative gemeinschaft-gesellschaft framework that encapsulates the governance philosophies of the pre- and post-succession periods and the transformations between them.

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  • Steier, Lloyd P. & Miller, Danny, 2010. "Pre- and post-succession governance philosophies in entrepreneurial family firms," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 145-154, September.
    • Handle: RePEc:eee:fambus:v:1:y:2010:i:3:p:145-154
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    2. Lenz Regina & Schormüller Claudia & Glückler Johannes, 2020. "Legitimation strategies in an emerging field: family firm succession consultancy in Germany," ZFW – Advances in Economic Geography, De Gruyter, vol. 64(2), pages 58-73, June.
    3. Tappeiner, Florian & Howorth, Carole & Achleitner, Ann-Kristin & Schraml, Stephanie, 2012. "Demand for private equity minority investments: A study of large family firms," Journal of Family Business Strategy, Elsevier, vol. 3(1), pages 38-51.
    4. Hamilton, Eleanor & Discua Cruz, Allan & Jack, Sarah, 2017. "Re-framing the status of narrative in family business research: Towards an understanding of families in business," Journal of Family Business Strategy, Elsevier, vol. 8(1), pages 3-12.
    5. Boris Rumanko & Zuzana Lušňáková & Monika Moravanská & Mária Šajbidorová, 2021. "Succession as a Risk Process in the Survival of a Family Business—Case of Slovakia," JRFM, MDPI, vol. 14(10), pages 1-20, September.
    6. Fletcher, Denise & Massis, Alfredo De & Nordqvist, Mattias, 2016. "Qualitative research practices and family business scholarship: A review and future research agenda," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 8-25.
    7. Elena Dalpiaz & Paul Tracey & Nelson Phillips, 2014. "Succession Narratives in Family Business: The Case of Alessi," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1375-1394, November.
    8. De Massis, Alfredo & Kotlar, Josip, 2014. "The case study method in family business research: Guidelines for qualitative scholarship," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 15-29.
    9. Simon, Alexandra & Marquès, Pilar & Bikfalvi, Andrea & Dolors Muñoz, M., 2012. "Exploring value differences across family firms: The influence of choosing and managing complexity," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 132-146.
    10. Wouter Broekaert & Petra Andries & Koenraad Debackere, 2016. "Innovation processes in family firms: the relevance of organizational flexibility," Small Business Economics, Springer, vol. 47(3), pages 771-785, October.
    11. Wright, Mike & Kellermanns, Franz W., 2011. "Family firms: A research agenda and publication guide," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 187-198.
    12. Binz Astrachan, Claudia & Astrachan, Joseph H. & Kotlar, Josip & Michiels, Anneleen, 2021. "Addressing the theory-practice divide in family business research: The case of shareholder agreements," Journal of Family Business Strategy, Elsevier, vol. 12(1).
    13. Stamm, Isabell & Lubinski, Christina, 2011. "Crossroads of family business research and firm demography—A critical assessment of family business survival rates," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 117-127.
    14. Michel, Alexandra & Kammerlander, Nadine, 2015. "Trusted advisors in a family business's succession-planning process—An agency perspective," Journal of Family Business Strategy, Elsevier, vol. 6(1), pages 45-57.
    15. Sinan Caykoylu, 2021. "Retired Yet Involved: How Even After the Succession Predecessors of Family Businesses Continue to Influence Their Firms," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(2), pages 1-19, July.
    16. Ahrens, Jan-Philipp & Uhlaner, Lorraine & Woywode, Michael & Zybura, Jan, 2018. "“Shadow emperor” or “loyal paladin”? – The Janus face of previous owner involvement in family firm successions," Journal of Family Business Strategy, Elsevier, vol. 9(1), pages 73-90.
    17. Ine Umans & Maarten Corten, 2023. "Ownership succession intentions affecting earnings management in private family firms," Small Business Economics, Springer, vol. 61(2), pages 827-842, August.
    18. Hedberg, Patricia R. & Danes, Sharon M., 2012. "Explorations of dynamic power processes within copreneurial couples," Journal of Family Business Strategy, Elsevier, vol. 3(4), pages 228-238.
    19. Vazquez, Pedro & Rocha, Héctor, 2018. "On the goals of family firms: A review and integration," Journal of Family Business Strategy, Elsevier, vol. 9(2), pages 94-106.
    20. Cater, John James & Kidwell, Roland E., 2014. "Function, governance, and trust in successor leadership groups in family firms," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 217-228.
    21. Grundström, Christina & Öberg, Christina & Öhrwall Rönnbäck, Anna, 2012. "Family-owned manufacturing SMEs and innovativeness: A comparison between within-family successions and external takeovers," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 162-173.
    22. Rantanen, Noora & Jussila, Iiro, 2011. "F-CPO: A collective psychological ownership approach to capturing realized family influence on business," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 139-150.
    23. Liu, Zixu & Zhou, Jianghua & Li, Jizhen, 2023. "How do family firms respond strategically to the digital transformation trend: Disclosing symbolic cues or making substantive changes?," Journal of Business Research, Elsevier, vol. 155(PA).
    24. Chrisman, James J. & Chua, Jess H. & Steier, Lloyd P. & Wright, Mike & McKee, D’Lisa N., 2012. "An agency theoretic analysis of value creation through management buy-outs of family firms," Journal of Family Business Strategy, Elsevier, vol. 3(4), pages 197-206.

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