University of Oulu

Muhos, Matti, Simunaniemi, Anna-Mari, Kurikkala, Heli, Heinonen, Jarna & Phusavat, Kongkiti (2021) Engaging successors in family businesses : Case studies in Finland and Thailand. In: Yan, H.-D., & Yu, F.-L.T. (eds.) The Routledge Companion to Asian Family Business: Governance, Succession, and Challenges in the Age of Digital Disruption. Routledge. https://doi.org/10.4324/9780429342813

Engaging successors in family businesses : case studies in Finland and Thailand

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Author: Muhos, Matti1; Simunaniemi, Anna-Mari2; Kurikkala, Heli2;
Organizations: 1Kerttu Saalasti Institute, University of Oulu, Oulu, Finland
2Micro-entrepreneurship Center of Excellence (MicroENTRE), Kerttu Saalasti Institute, University of Oulu, Oulu, Finland
3School of Economics, University of Turku, Finland
4Department of Industrial Engineering, Kasetsart University, Bangkok, Thailand
Format: article
Version: accepted version
Access: embargoed
Persistent link: http://urn.fi/urn:nbn:fi-fe2022032324571
Language: English
Published: Routledge, 2021
Publish Date: 2022-10-28
Description:

Abstract

The intention to pass the control of the business to the next generation (i.e. intrafamily succession) is an important difference between family and nonfamily firms (Chua, Chrisman, & Sharma, 1999). Managing succession is one of the biggest problems faced by family businesses globally (Halkias et al., 2010). Fewer than one in three family businesses survive to the second generation, and less than one in twenty to the third generation. The future of family business is highly dependent on whether family business leaders find competent successors who are willing to take over their business. Interestingly, previous studies indicate that next-generation family members are often not necessarily interested in joining the family business (Zellweger, 2017). Given the ageing population and many family business leaders’ desire to retire and transfer their business to the members of the next generation, the low intention of the potential successors to continue the family business poses a huge challenge — not only for the family businesses but also for the economy (Garcia et al., 2019).

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ISBN: 978-0-429-34281-3
ISBN Print: 978-0-367-35950-8
Pages: 153 - 173
Host publication: The Routledge companion to Asian family business : governance, succession, and challenges in the age of digital disruption
Host publication editor: Yan, Ho-Don
Yu, Fu-Lai Tony
Type of Publication: A3 Book chapter
Field of Science: 512 Business and management
Subjects:
Copyright information: © 2021 The Authors. This is an Accepted Manuscript of a book chapter published by Routledge in The Routledge Companion to Asian Family Business: Governance, Succession, and Challenges in the Age of Digital Disruption on 28 April 2021, available online: https://doi.org/10.4324/9780429342813.