Factors influencing the behavioral intention of family business successors towards management succession and the moderating effect of primogeniture and patriarchy

• Main Author: Ang, Charisse Jollins Z.
• Format: text
• Published: Animo Repository 2020
• Subjects: Family-owned business enterprises—Succession; Entrepreneurial and Small Business Operations
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/9452
• Institution: De La Salle University

Family is the biggest component of Family Businesses, which adds more complexity in the dynamics between ownership and management of a business organization. However, little attention was put into the family component and how it influences management succession. Many family business literature highlight professionalization and/or organizational restructuring during the expansionary stage of family businesses. In this study, however, through simple and multiple linear regressions, previously proposed social factors that positively influence the intention of young successors in managing their parents’ family businesses were examined. Tests for moderation were conducted to investigate if there is still a prevalence of Patriarchy and Primogeniture among Philippine family businesses, which are common psychosocial constructs established from both western and eastern monarchical traditions and subconsciously adopted to how wealth and power were transferred within families and businesses. Results showed that in today’s Filipino family businesses, Patriarchy and Primogeniture were not prevalent anymore at least among the sampled group of this study. This allowed us to infer that there is a fair opportunity to manage family businesses among males and females; and first-borns and non-firstborns. Also, this research determined that the alignment of the successor’s personal needs to the family business’ goals has the strongest positive and significant relationship to the intention of a successor to manage a family business; followed by the successor’s perceived predecessor’s trust to the intention and abilities of the successor. This study recommends further post-positivist research with broader sample size and qualitative research to discover or test other proposed variables from the literature that affects behavioral intention to manage family businesses. Also, valuable insights may be discovered about how different birth-orders aside from first-borns play a role in influencing the different factors that affect behavioral intention to manage family businesses.