Publication detail

Succession planning in family businesses: the role of long-term plans

SRBOVÁ, P. REŽŇÁKOVÁ, M.

Original Title

Succession planning in family businesses: the role of long-term plans

Type

article in a collection out of WoS and Scopus

Language

English

Original Abstract

Today, many of the oldest businesses in Europe and around the world are family-owned and their survival is the result of their ability to change over time. The key objective of a family business is to keep the firm in the family by passing it on to the next generation. The transfer of a business (the succession process) is considered an extremely difficult part of the business life cycle. A lack of planning can be one of the main reasons why business transfers fail, because it is only during the planning process that participants usually realise how complex the succession process actually is. We assume that the formulation of a strategic plan can play an important role in the transfer of a business. At the same time, however, its benefits are determined by whether the family accepts the plan, implements it, and involves the next generation. The objective of this paper is to analyse whether family businesses have strategic plans and which factors influence their formulation. The assumptions have been verified in a questionnaire survey among 212 family business owners in the Czech Republic. We used frequency analysis and a Chi-square test to evaluate the responses. Person’s adjusted residuals were used to describe the links between the answers. The owners’ responses indicate that strategic planning is not typical for Czech family businesses. However, if we consider long-term planning as an intention to keep the business family-owned in future generations, then this can be confirmed in the data. The majority (84 %) of owners plan to hand the business over to the next generation. Planning in family businesses is correlated with a larger number of employees – both the total number of company employees and a larger number of family employees. The previous experience of the founder or a family member also proved to be an important factor in the making of plans.

Keywords

Czech Republic, frequency analysis, family business, strategic planning, succession process

Authors

SRBOVÁ, P.; REŽŇÁKOVÁ, M.

Released

31. 12. 2021

ISBN

1849-7535

Periodical

Book Series: International Scientific Conference on Economic and Social Development

State

Republic of Croatia

Pages from

126

Pages to

135

Pages count

347

URL

https://www.esd-conference.com/past-conferences

BibTex

@inproceedings{BUT176004,
  author="Pavla {Srbová} and Mária {Režňáková}",
  title="Succession planning in family businesses: the role of long-term plans",
  booktitle="Economic and Social Development",
  year="2021",
  journal="Book Series: International Scientific Conference on Economic and Social Development",
  pages="126--135",
  issn="1849-7535",
  url="https://www.esd-conference.com/past-conferences"
}