The influence of successor-related factors on the succession process in small and medium-sized family businesses

In this study, successor-related factors that can influence the succession process in small and medium-sized family businesses are empirically investigated. This study was undertaken in South Africa among 2,458 owner-managers and successors in 1,038 family businesses. These respondents were identified via a snowball-sampling technique. A total of 332 usable questionnaires were returned. The dependent variable in this study, namely, the perceived success of the succession process, is measured by two underlying dimensions: satisfaction with the process and continued profitability of the business. The empirical results indicate that the successor-related factors that influence satisfaction with the process are, on the one hand, the willingness of the successor to take over and the relationship between the owner-manager and successor, on the other hand. The continued profitability of the business is influenced by the willingness of the successor to take over the business, the preparation level of the successor, and the relationship between the successor and owner-manager. The relationship between the owner-manager and successor is in turn influenced by the extent to which interpersonal relationships in the family can be described as harmonious. Based on these findings recommendations for successful succession are offered.