• Title, Summary, Keyword: Succession of family businesses

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The Role of Quality of Relations in Succession Planning of Family Businesses in India

  • Merchant, Parimal;Kumar, Arya;Mallik, Debasis
    • The Journal of Asian Finance, Economics, and Business
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    • v.4 no.3
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    • pp.45-56
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    • 2017
  • Considerable research has been done on the issue of succession in family businesses. However the process of induction, of preparing the members of the next generation for joining the family business has not been examined in detail. This paper attempts to analyse the relevance of three critical factors - 'quality of relations', 'willingness of the inductee' and 'the ability to manage tensions harmoniously' - to the induction process and the progress of the business. It focuses on the Indian context, specifically in the Small and medium Enterprise (SME) area. Qualitative research has been carried out. The Case Study method is used and data has been gathered from two families (including two branches of one family), using frequent unstructured interviews, over a period of five years. It is concluded that positive impact on business, family and the inductee depends to a large extent on the quality of relations, willingness of the inductee and the ability of both the inductor and inductee to handle and manage the tensions. Thus the findings of the study extend current understanding about succession drivers to the specific context of eastern cultural and developing economy represented by the Indian family businesses in the small and medium enterprise sector.

The Influence of Family Firms Succession Factors on Entrepreneurship and Business Performance (가족기업 승계요인이 기업가정신과 경영성과에 미치는 영향)

  • Kim, Young-Su;Kim, Hyun-Ku
    • The Journal of the Korea Contents Association
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    • v.18 no.9
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    • pp.375-389
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    • 2018
  • A successful succession of family businesses is a very important issue that greatly affects the sustainability of the business. Among the factors affecting successful succession, the successors of the family business were identified on the entrepreneurship held by small business owners and on the management performance of the business. This study was analyzed empirically by the managers who currently run the actual business through completion of or process of succession. Successive factors were established as a place for education and succession of heirs, and entrepreneurship was divided into innovativeness, risk-taking and pro-activeness, and management performance was divided into financial and non-financial achievements. The analysis shows that the education and training of successors among succession factors have significant implications for both managerial performance and entrepreneurship, and that the success of successors has no significant impact on non-financial performance, innovativeness and pro-activeness. In addition, while the risk-taking nature of entrepreneurship was concerned with the performance of management, innovativeness and pro-activeness were not all significant. According to this study, the education and training of successors and the determination of successors in succession family businesses have a significant impact on management performance and entrepreneurship.

A Study on Inheritance Tax Relief System for Business Succession (가업상속제도 개선방안)

  • Lee, Seong-Weon
    • Journal of Digital Convergence
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    • v.12 no.7
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    • pp.95-101
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    • 2014
  • In this study, we look at the current state of the inheritance system of family business in korea, you are trying to present a remedy for the activation of family business succession. The family business inheritance tax assistance benefits at the time, it is necessary to define the effect that offers the advantage of tax support to reflect correctly, the scope of its application subject property, easy to match the requirements of the family business succession is family business succession Small Business issue of effectiveness of the system has not emerged, there is a need to strengthen the requirements of family business succession that takes into account the reality of small and medium-sized enterprises. In addition, if you provide the inheritance tax deduction for the inheritance of the family business, only to inherit the family business of a substantial tax advantages help to move back, the provisions of the post-management is necessary.

An Empirical Study on Business on Succession Process Consulting Satisfaction of Family Business: Focused on Small Business (가족 기업에 대한 승계과정 컨설팅 만족도에 관한 실증 연구: 소상공인을 중심으로)

  • Lee, Dong-Kil;Cho, Munseok;Jeon, Joo-Sang
    • Journal of Digital Contents Society
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    • v.19 no.5
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    • pp.917-926
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    • 2018
  • In recent years, it has been supporting sustainable growth to be a longevity company such as training, consulting, finding and rewarding excellent companies, and tax support for the smooth family business succession of family businesses. The smooth family business succession of these companies has positive effects such as maintaining and improving technological competitiveness, maintaining stable employment, creating long-term investment and new jobs. However, since the concept of the family dominant business is still unfamiliar in Korea, the research on the family dominant business is also insufficient. Now, as family dominant business have a very high share in the national economy, there is a need for research on family dominant business in Korea. Therefore, this study conducted an empirical research on succession process consulting satisfaction of family business centered on small business owners and analyzed the difference of it.

Effects of the Characteristics of the Succession Process on Organizational Performance of Family Business Firms: Moderating Effects of Strategic Human Resource Management (가족기업의 승계프로세스 특성이 조직성과에 미치는 영향: 전략적 인적자원관리의 조절효과)

  • Woo, Chang-Soo;Park, Ho-Hwan;Choi, Myungweon;Oh, Jin Uk;Jang, Myoung-Hak
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.10 no.4
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    • pp.133-145
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    • 2015
  • This study investigates the relationships between the characteristics of the succession process and organizational performance as well as the moderating roles of strategic HRM practices in these relationships. Data was collected from 256 successors and HR managers(128 for each) in South Korean family businesses where the succession process either had been completed or was currently underway around time of data collected and analyzed. Our results indicate that the provision of successor training is positively related to organizational performance, while the clarity of the incumbent's role after succession, communication of the decision regarding succession, and the incumbent's propensity to step aside are not significantly related to organizational performance. Further, our results confirm (a) the moderating effects of strategic staffing practices between communication of the decision regarding succession and organizational performance, and (b) the moderating effects of strategic staffing practices between the incumbent's propensity to step aside and organizational performance. The theoretical and practical implications of these findings are discussed.

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