Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : succession


Mapping The Trajectory Of Succession Planning In Family Based Companies- A Critical Analysis

Nilavro Chatterjee, Dr. Shivaji Banerjee

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 6, Pages 440-456
DOI: 10.47750/cibg.2021.27.06.037

Family businesses are the germination locus of all enterprise universally, they
contribute a sizeable quantum of funds to their national exchequer throughout the free world
globally. Their size and gamut are from micro corner shops to large conglomerates like TATA
Empire, Ford, Samsung et al are globally known and recognized. The promoters are invariably
ambitious, having sharp business acumen and profound compatibility with the environment and
competition, the challenge emerges when through efflux of time the original group has to make
way and successors to step in to their shoes, this is more so when there are multiple claimants
and all of them might not have the caliber or inclination. The plausible solution to this enigma
is the topic of this treatise with case studies, some succession are still ongoing process like Cyrus
Mistry versus Tata and Lodha versus Birla, some has lost relevance like nationalization of IISCO
a hangover of an old arcane concept. The new concept of family counsel as prevailing in Dabur
and gradual professional ethos in Tata are interesting, if carefully juxtaposed avoiding mélange
might yield appropriate solutions if not panacea albeit keeping within the realm of the Indian
Corporate Law, ethos and Taxation laws.

The effect of planning managerial and ownership transfers on successful succession in family-owned business: A Tunisian Case

Ameni ABID; Amel DAKOUMI HAMROUNI; Mohamed Karim BEN HADJ MBAREK

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 1805-1827

Research on both planning managerial and ownership transfers in family businesses is almost nonexistent. The purpose of this study is to shed light on the importance of managerial and ownership planning in the succession process and its significance to sustain firm performance in the long run. The research has used a qualitative unique case study. Semi-structured interviews were conducted with two effective successors in family-owned businesses. Event history analysis method is used to study the speeches. This research shows that both managerial and ownership planning are interrelated strategic issues that merit thought and action. However, many business owners make the mistake of creating one plan without accounting for the other. Management succession planning should include development, training and support of successors. Furthermore, findings also showed that the existence of internal governance mechanisms reduces conflicts and therefore has a positive effect on succession in family-owned business.