Considering the significant economic contribution of family businesses worldwide, improving the success rate of business succession is crucial. This research focuses on the topic of successors’ decision-making in family businesses. The objective is to identify influences on these decisions and the outcomes of both autonomous and externally influenced decisions. Based on qualitative research, 12 interviews with successors from various family businesses were conducted. Findings reveal that successors perceive a combination of external and internal factors influencing their decision-making and outcomes. Autonomous decisions are perceived as fast, empowering and innovation-enhancing, but may lack the benefit of different perspectives and the distribution of responsibility. Conversely, decisions that are influenced by predecessors are perceived as slower, more stalled, and more frustrating, however, might profit from shared responsibility and enrichment from different perspectives. Applying the model of paradox of autonomy and control, this research illustrates the importance of resolving this paradox for the success of family businesses. Effective management of this issue requires fostering good relationships, maintaining open communication and ensuring equal treatment of successors. A balance between the successors' autonomy and the consideration of the predecessors' knowledge is perceived to be the ideal approach. These practices support successors in their role and promote business continuity, while creating a balance between the expertise of predecessors and the necessary autonomy for successors to innovate and lead effectively.
- Family business succession
- Paradox of autonomy and control
- Successor decision-making
- Predecessor influence
- Family business continuity
Between autonomy and control: successors’ decision-making in family businesses
Fries, C. (Student). 3 Jul 2024
Student thesis: Master's Thesis