Family Businesses in Transition Economies by Léo-Paul Dana & Veland Ramadani

Author:Léo-Paul Dana & Veland Ramadani
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

According to Szulanski (1996) there might be some obstacles that hinder knowledge transfer to the next generation in SFF, and that are: random ambiguity and unproven correctness, founder not interested to transfer knowledge, successor not motivated to accept knowledge, factors of circumstances, like limitations in organizations and bad relationship between predecessor and successor. Asking successors a question about the importance of founders’ interest for transferring knowledge to the successor, importance of successor’s motivation for accepting knowledge from the founder and importance of a good relationship between the founder and successor, we were not surprised, that all successors strongly agreed that these criteria are a pre-condition for successful transfer of knowledge. In all studied cases the pre-conditions for successful succession were at place which is confirmed by characteristics of the studied sample: regarding succession, in two SFF succession has been already fully done (management and ownership), in one case the founder is actively present in the firm while being retired, in the other case the founder is working for his SFF as a single entrepreneur. In two SFF management has been transfered to the successors, transfer of ownership is in procedure, both founders are retired, but active in the firms. In one SFF management is transferred, but not ownership, although founder is retired, but active. Three other SFF are in the midst of transfering ownership and management, one is in transfer of ownership only, the founder being still employed, but co-founder died, so transfer of ownership is more a process of regulating heritage. Only in two SFF there are only plans for succession and founders do not know or say when.

Proposition 5

Interest of the founder, successor’s motivation and good relationship between the predecessor and successor are positively related to successful knowledge transfer and consequently innovativeness of the next generation in SFF.

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