SUCCESSION IN FAMILY BUSINESSES: CULTURAL VARIATIONS AND IMPLICATIONS

Abstract

Purpose: This study investigates the impact of cultural factors on succession planning practices in family businesses, addressing the need for a deeper understanding of how cultural differences influence leadership transition. Objective: The objective is to conduct a cross-cultural comparison of succession planning practices in family businesses, exploring how cultural values and norms shape succession decisions and processes. Methodology: A qualitative research approach was employed, involving in-depth interviews with family business owners and successors from diverse cultural backgrounds. The study analyzed case studies from multiple countries to identify cultural-specific succession planning practices and challenges. Findings: The study reveals that cultural influences significantly impact succession planning practices in family businesses. Key findings indicate that cultural values such as collectivism, individualism, and power distance shape succession decisions, and that cultural intelligence is crucial for navigating succession planning challenges. Originality: This research contributes to the family business literature by providing new insights into the role of culture in shaping succession planning practices. The cross-cultural comparison offers a nuanced understanding of the complexities involved in transferring leadership across cultures. Implications: The study's findings have implications for family business owners, successors, and advisors, highlighting the need for culturally sensitive succession planning approaches. The research also informs policymakers and educators about the importance of cultural awareness in family business succession. Recommendations: The study recommends that family businesses develop succession planning strategies that account for cultural differences and nuances. It also suggests that educators incorporate cultural intelligence into family business curricula to prepare future leaders for the challenges of cross-cultural succession planning. Future research directions include exploring the impact of globalization on succession planning practices in family businesses.