The Importance of Knowledge Management in the Succession Process of Family Businesses

We evaluate empirically the importance given by the predecessor in knowledge management (KM) in the succession process of family businesses (FB). Our main subject-matter is that business succession in FB can be interpreted and managed as a process of knowledge transfer and creation in a synergic relation between predecessor and successor. The results, obtained by implementation of a national survey, illuminate that the predecessors intend to choose a successor within the family, giving preference to family members accustomed with the organization's activity. Besides, the predecessors also consider essential that the successor is subject to a process of preparation, who knows the facets of the organization and the business well. These three factors depend on the necessity of sharing knowledge by the predecessor and/or by organization employees. For the succession process to be effective, KM will be necessary within the organization. It will be necessary to contemplate all procedures and tools to be adopted in KM both in the acquisition of experience by the successor and at the planning stage of succession.