Succession and Reconstructing Social Capital in Vietnamese Family Businesses

Family businesses play a central role in the ongoing growth and development of the Vietnamese economy. Economic, social, and demographic changes are undermining the transition of family business to succeeding generations. This study examines the challenges of intergenerational succession in Vietnamese family businesses through the lens of social capital theory. The article examines how the next generation of family business leaders in Vietnam is addressing social capital deficiencies that hinder effective business transition. The study employed a constructionist ontology and an interpretivist epistemology, utilising semi-structured interviews with family business owners and managers. The research draws from participants’ perceptions of social, political, and competitive contexts and the subsequent behaviour that is predicated by those contexts. Findings: Economic transformation, driven by disruptions to the business environment through central planning, coupled with demographic shifts and changes in educational attainment, has impacted family structures, complicating intergenerational business transfers. This is compounded by social transformation weakening familial relationships and connections critical to family cooperation and business continuity. The preservation and renewal of social capital are critical issues for succession planning in Vietnamese family businesses. This research addresses gaps in understanding the interplay between the generational divide, social capital, and family business succession in Vietnam.