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Effects of national culture on leadership succession planning in small-to-medium scale family enterprises

Author

Listed:
  • Kim Anne Menezes
  • Suku Bhaskaran
  • Akshay Deswal

Abstract

This article reviews leadership succession in small-to-medium scale family enterprises in India and, through amplification of the findings, the practices of small-to-medium scale family enterprises in other emerging economies. The findings reveal that succession planning and practice is influenced by cultural underpinnings such as succession being confined to male family members; successors assuming leadership because of family expectations and filial piety rather than interest and competency; non-induction of 'outsiders' thereby limiting the opportunities to introduce greater diversity in leadership teams; business competencies being overly perceived from a business acumen and contact networks perspective; and training and development being confined to learning through shadowing incumbents. Consequently, family enterprises are unable to develop leaders with competencies to transition these enterprises to a higher growth and development trajectory. Small-scale family enterprises are not accessing market opportunities arising from the liberalisation of India's economy and its greater integration with the global economy.

Suggested Citation

  • Kim Anne Menezes & Suku Bhaskaran & Akshay Deswal, 2019. "Effects of national culture on leadership succession planning in small-to-medium scale family enterprises," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 38(1/2), pages 210-231.
    • Handle: RePEc:ids:ijesbu:v:38:y:2019:i:1/2:p:210-231
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