Succession practices in selected local family businesses

• Main Author: Santiago, Ma Andrea L.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Family-owned business enterprises > Succession; Family corporations > Case studies; Success in business; Business
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/799
• Institution: De La Salle University

The failure to transfer leadership from one generation to another is said to contribute to the high mortality rate of family businesses. This study looks into local family businesses that have had successful succession experiences. Common characteristics that could have accounted for successful leadership transition were then integrated into a successful model.The approach used was qualitative in nature. The succession experiences of family business owners who were willing to participate in the study were first documented. To ensure the reliability of the information gathered, the case history was presented to the business owners. From there, characteristics found in the different cases were compared and contrasted. These characteristics could stem from the succession process itself (selection and preparation of successor) and/or from the family and business system.From the eight cases, it was observed that the healthy functioning of the family contributed to the healthy functioning of the business, and together this accounted for positive succession experiences. Family businesses that have survived leadership transition become stronger as a business and their families develop stronger ties. Families that are healthy, value family unity, share mutual respect and understanding, do not struggle for power, and consequently, are highly committed to preserving their good name. This positive outlook about their family results in a high commitment to the perpetuity of the business. Clear business values are shared that contributes to financial stability. Families that are interested in perpetuating their family businesses must therefore strive to preserve their families and maintain harmonious relations. This results from proper upbringing and is enhanced by regular and frequent family meetings both on a social and business level. Families who feel that they are stronger together rather than apart are able to weather planned and unexpected changes in their families and businesses.