A measuring instrument to predict family succession commitment to family business

Abstract

Family businesses (FBs) are the most prevalent form of business throughout the world, and are highly pertinent in developing economies. The issue of succession in FBs has received some attention by researchers. Given that 15% of family businesses survives into the third generation, it remains an area of concern. In South Africa 80% of businesses in the formal sector are family owned. This article discusses the current level of knowledge in succession and commitment theories within a family business context. The different theoretical approaches to commitment include the behavioural, attitudinal and motivational theories. This article suggests that the motivational commitment approach must be used to predict successor commitment in the family business. A model is suggested to verify family succession commitment relationships and a measuring instrument has been developed based on the model to verify successor commitment.