IDEAS home Printed from https://ideas.repec.org/a/ibf/rbfstu/v9y2018i1p85-94.html
   My bibliography  Save this article

Strategic Sme Succession Planning: Enhancing Value & Wealth Vis-À-Vis Organizational Diagnosis

Author

Listed:
  • Michael Flynn
  • Warren J. Rutherford

Abstract

Baby Boomers and other business owners are divesting their Small and Mid-Sized Enterprises (SME) for several reasons. Absent a well-planned Business Succession Plan, decades of knowledge, innovation, and wealth can be lost both to stakeholders and society alike. Although Succession Planning has been a strategic management part for many years, only recently has it become recognized for its importance, particularly as it relates to the creation of value that makes mergers, acquisitions, and strategic alliances possible, thus resulting in the continuation of an SME’s past and current efforts. Only since 1991 has Intellectual Capital (IC) / Intangible Assets (IA) of SMEs start to become recognized as a trove of untapped wealth that could enhance the value and continuation of any organization. Notwithstanding the current difficulty in quantifying IC/IA, we propose that through the combination of strategic succession planning with organizational diagnosis may a forthcoming exit stakeholder find internal business assets that may be improved upon to maximize value and wealth for the SME, while simultaneously improving the chance of transition success at the time of exit execution. Exploration of this subject matter may serve to give Scholars and Practitioners fodder for theoretical/empirical research and practical application

Suggested Citation

  • Michael Flynn & Warren J. Rutherford, 2018. "Strategic Sme Succession Planning: Enhancing Value & Wealth Vis-À-Vis Organizational Diagnosis," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 9(1), pages 85-94.
    • Handle: RePEc:ibf:rbfstu:v:9:y:2018:i:1:p:85-94
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/rbfstu/rbfs-v9n1-2018/RBFS-V9N1-2018-7.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
    2. Holthausen, Robert W. & Watts, Ross L., 2001. "The relevance of the value-relevance literature for financial accounting standard setting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 3-75, September.
    3. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University.
    4. Randolph P. Beatty & Edward J. Zajac, 1987. "Ceo change and firm performance in large corporations: Succession effects and manager effects," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 305-317, July.
    5. Feltham, GA & Ohlson, JA, 1996. "Uncertainty resolution and the theory of depreciation measurement," Journal of Accounting Research, Wiley Blackwell, vol. 34(2), pages 209-234.
    6. Shepherd, Dean A. & Wiklund, Johan & Haynie, J. Michael, 2009. "Moving forward: Balancing the financial and emotional costs of business failure," Journal of Business Venturing, Elsevier, vol. 24(2), pages 134-148, March.
    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. Florent Silve & Alexander Plekhanov, 2018. "Institutions, innovation and growth : Evidence from industry data," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(3), pages 335-362, July.
    2. Yi-Min Chen, 2008. "How Much Does Country Matter?," International Regional Science Review, , vol. 31(4), pages 404-435, October.
    3. Andrés Barge-Gil & Alberto López, 2015. "R versus D: estimating the differentiated effect of research and development on innovation results," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 93-129.
    4. Pedro de Faria & Francisco Lima, 2012. "Interdependence and spillovers: is firm performance affected by others’ innovation activities?," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4765-4775, December.
    5. Emanuele Giovannetti & Claudio Piga, 2023. "The multifaceted nature of cooperation for innovation, ICT and innovative outcomes: evidence from UK Microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 639-666, September.
    6. Alberto Franco Pozzolo, 2004. "Research and Development, Regional Spillovers and the Location of Economic Activities," Manchester School, University of Manchester, vol. 72(4), pages 463-482, July.
    7. Andrea Bassanini & Stefano Scarpetta, 2003. "The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 9-56.
    8. Nicholas Tsounis & Ian Steedman, 2021. "A New Method for Measuring Total Factor Productivity Growth Based on the Full Industry Equilibrium Approach: The Case of the Greek Economy," Economies, MDPI, vol. 9(3), pages 1-21, August.
    9. Werner Smolny, 2000. "Sources of productivity growth: an empirical analysis with German sectoral data," Applied Economics, Taylor & Francis Journals, vol. 32(3), pages 305-314.
    10. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    11. Dominique Guellec & Bruno Van Pottelsberghe de la Potterie, 2004. "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(3), pages 353-378, July.
    12. Imtiaz Ahmad & Pascal Alphonse & Michel Levasseur, 2010. "Les Effets De La Croissance Et De L'Endettement Sur Les Multiples De Capitaux Propres : Representation Theorique Et Comparaison Internationale," Post-Print hal-00481584, HAL.
    13. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    14. Carmela Martin & Francisco J. Velazquez & Bernard Funck, 2001. "European Integration and Income Convergence : Lessons for Central and Eastern European Countries," World Bank Publications - Books, The World Bank Group, number 13968, December.
    15. Mr. Manmohan S. Kumar & Mr. Dennis P Botman, 2007. "Global Aging Pressures: Impact of Fiscal Adjustment, Policy Cooperation, and Structural Reforms," IMF Working Papers 2007/196, International Monetary Fund.
    16. Ugur, Mehmet & Trushin, Eshref, 2018. "Asymmetric information and heterogeneous effects of R&D subsidies: evidence on R&D investment and employment of R&D personel," Greenwich Papers in Political Economy 21943, University of Greenwich, Greenwich Political Economy Research Centre.
    17. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    18. Mamuneas, Theofanis P., 1999. "Spillovers from publicly financed R&D capital in high-tech industries," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 215-239, February.
    19. Jakob B. Madsen, 2004. "Technological Revolutions, Innovations, and Trade Performance," EPRU Working Paper Series 04-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    20. Grimpe, Christoph & Sofka, Wolfgang, 2007. "Search Patterns and Absorptive Capacity: A Comparison of Low- and High-Technology Firms from Thirteen European Countries," ZEW Discussion Papers 07-062, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Baby-Boomers; Intangible Assets; Intellectual Capital; Organizational Diagnosis; SME; Strategic Succession Planning; Wealth;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

    Statistics

    Access and download statistics

    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:ibf:rbfstu:v:9:y:2018:i:1:p:85-94. 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: Mercedes Jalbert (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.