The influence of family-related factors on the succession process in small and medium-sized family businesses

Abstract

In this study family-related factors that can influence the succession process in small and medium-sized family businesses are empirically investigated.  The dependent variable in this study is measured by two underlying dimensions, namely satisfaction with the process and continued profitability of the business.  The empirical results indicate that the family-related factors that influence both the aforementioned dimensions are the mutual acceptance of roles, the relationship between the owner-manager and successor, and family harmony.  The continued profitability of the business is also influenced by the agreement to continue the business. The existence of family harmony in itself influences the relationship between the owner-manager and successor, the agreement to continue the business, as well as the mutual acceptance of roles.  The managerial implications of these empirical findings are discussed and recommendations offered.