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Succession planning in family firms: family governance practices, board of directors, and emotions

Author

Listed:
  • Ine Umans

    (Hasselt University)

  • Nadine Lybaert

    (Hasselt University
    University of Antwerp)

  • Tensie Steijvers

    (Hasselt University)

  • Wim Voordeckers

    (Hasselt University)

Abstract

This study builds on implementation intention theory to indicate that both business and family governance practices influence the succession planning process in family firms. In addition, this study draws on goal adjustment theory to explore whether the family CEO’s emotions, being his or her inability to let go of the family firm, hamper the governance decisions of the board of directors concerning that succession planning process. Applying a moderated mediation analysis on a sample of 225 family firms, results show that board involvement in the succession process mediates the positive relationship between the use of family governance practices and the level of succession planning. In addition, the family CEO’s inability to let go negatively moderates this mediating relationship which signifies that emotions influence governance outcomes in family firms.

Suggested Citation

  • Ine Umans & Nadine Lybaert & Tensie Steijvers & Wim Voordeckers, 2020. "Succession planning in family firms: family governance practices, board of directors, and emotions," Small Business Economics, Springer, vol. 54(1), pages 189-207, January.
    • Handle: RePEc:kap:sbusec:v:54:y:2020:i:1:d:10.1007_s11187-018-0078-5
    DOI: 10.1007/s11187-018-0078-5
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