Leadership transfer and the successor's development in the family firm

Abstract

The objective of this paper is to study the factors influencing the transfer of leadership in family firms to the next generation of the owner family, focusing on the successor figure. After reviewing the relevant literature about family businesses and the successor's development, we state two general research propositions related to training for leadership and commitment as the main factors affecting the succession process. Following these propositions, we look in detail at seven succession case studies taken from the automobile distribution industry. These cases differ in terms of the success of the results. The quality of interpersonal relationships, successors' expectations, and the role of the predecessor appear to be critical in distinguishing between more and less successful processes.