Successor’s satisfaction on business succession process

Abstract

Purpose of the article Post succession performance of family owned businesses has become ineffective. Literature specifies that inter-generational succession is the prime cause for succession failures. Due to this, current family owned businesses focus attention on finding alternative, profitable succession modes. The foremost purpose of this research was to compare performances of family and non-family successors. Methodology/methods The study comprises two stages: Exploratory study was used to develop the conceptual framework and hypotheses, and also formal study was used. Sample units were selected through simple random sampling. The data collection modes were a mail survey and in-depth discussions. Scientific aim of the study is to compare family member successors with unrelated manager successors based on the successors’ initial satisfaction with the business succession process.. Findings According to study findings, not all successors are completely satisfied with the business succession process. Unrelated manager successors have higher satisfaction the family member successors, but neither group exceeds the moderate level. All successors recorded lower performance than the incumbent but unrelated manager successors had better results the family member successors in both indicators Conclusions If family members are not available or unprepared for business succession, unrelated manager successors are a viable alternative.