Who influence family company performance: Founder of successor?

• Main Author: Amran, Noor Afza
• Format: Conference or Workshop Item
• Language: English
• Published: 2011
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/5125/1/2.pdf; http://repo.uum.edu.my/5125/; http://www.internationalconference.com.my/proceeding/2ndicber2011_proceeding/2ndicber2011_proceeding4.htm
• Institution: Universiti Utara Malaysia

Studies concentrating on having family members to manage family businesses are widely discussed in overseas with little research actually taking place in Malaysia. Thus, this study examines the choice of whether the founder or successor that enhance company performance.The sample size of this study is 888 family companies’ that were listed on Bursa Malaysia from 2003 to 2007.The findings indicate that successors contribute significantly towards company performance than the founders.One of the reasons may be due to the experience and skills gained from the founders have give advantage to the successors to enhance more than the founders.Further, with high education background qualification, aggressive characteristic, risks taker, innovative and energetic values have made the successors to perform better than the founders in enhancing the family companies’ performance.In sum, the policymakers and investors at large need to take note that there is difference in company performance between the founder and successor leadership.