Vision and Exchange in Intra–Family Succession: Effects on Procedural Justice Climate among Nonfamily Managers

Abstract

We develop and extend fledgling literature on procedural justice climate and succession processes in family firms by focusing on the impact of family vision and exchange systems on procedural justice climate among nonfamily managers. Drawing upon social exchange theory, we argue that family involvement accompanied by a weak family vision will be associated with restricted exchanges in dominant coalitions, which will have a negative impact on procedural justice climate among nonfamily managers. Conversely, we suggest that family involvement with a strong family vision will be accompanied by generalized exchange, which should positively impact the procedural justice climate among nonfamily managers. We expect that the extent to which nonfamily managers work to support or hinder intra–family succession will be influenced by their collective perception of a positive or negative procedural justice climate.