The postponed succession: an investigation of the obstacles hindering business transmission planning in family firms

Abstract

Purpose: Drawing on the theory of planned behaviour, this research aims to investigate systemically if and how incumbents and successors share attitudes, social norms and perception of the feasibility of their business succession. Design/methodology/approach: Qualitative research carried out on a group of small Italian family firms (N = 10). Findings: This study provides evidence of background mechanisms (attitudes, social norms and perception of feasibility) affecting the implementation of business succession planning in family SMEs. Moreover, this study provides further evidence supporting the role of social norms in strategic decision-making processes within family firms. Research limitations/implications: Findings from this study contribute to current literature in multiple ways and have several research implications. Practical implications: This study highlights that it is more appropriate to adopt a systemic rather than an individualistic approach in investigating/managing business succession. Social implications: Family firms are the most widespread type of firms in the world; thus, a systematic failure in business transmission represents a prominent socioeconomical problem for policy-makers and institutions. Originality/value: This study leads to further developments in exploring business succession from a psychological point of view. Findings also highlight the limits of how a theory applied in order to predict individual behaviour can provide insight into collective behaviour involving a family.