Family businesses’ succession in posttransition countries

Abstract

Succession is a very complex process and a critical phase in the life cycle of a family business. Finding a successor in ownership and management is one of the most demanding succession challenges, especially since younger generations have little interest or intention in joining their parents’ businesses. The action research was conducted to expand our understanding of owners’ attitudes and behaviors toward succession and the factors influencing successors’ intention and decision to enter the family business. The research also addresses the applicability of informal and formal family governance mechanisms in family business succession in post-transition countries. The research findings show the importance of the family dimension and emotional aspects of succession in post-transition countries. The theoretical hypotheses developed to form the basis for future confirmatory research and have implications for the key stakeholders and support infrastructure institutions involved in family business succession in post-transition countries.