Transgenerational Succession in Turkish Family Businesses: A Grounded Theory Study

Abstract

More than 80% of the companies in the world economies are family businesses and, in many countries, more than 70% of the gross domestic product is produced by family businesses. However, the inability of most family businesses to survive beyond a few generations has made the succession one of the most important issues related to family businesses. Understanding the factors affecting the succession is of great importance for the sustainability of family businesses. Purpose: In this study, it is aimed to develop a model to understand the problems of transgenerational succession of Turkish family businesses. Method: The classical grounded theory methodology was applied, interviews were held with the founders, second generation family members, brides and grooms, professional managers and advisors of Turkish family businesses and the collected data were subjected to coding and continuous comparative data analysis to form the model. Findings: As a result of the study, it has been concluded that the main problems of the founders of Turkish family businesses regarding the transgenerational succession are the concern of "What will happen to me?" if the succession takes place, and the behavioral model of the founders of Turkish family businesses to overcome these problems and concerns about the transgenerational succession is not to do the succession until they die, in other words, “Over my dead body". Originality: The greatest originality of this study is that it is the first study on transgenerational succession of Turkish family businesses by using the classical grounded theory methodology.