Succession in the Family Business

What is it about?

The succession process represents one of the most critical events in the family business life cycle. The purpose of this paper is to explore this process while focusing first on the drivers behind the choice of successor and, second, on the impact of this choice on the entrepreneurial behavior of the siblings. The three dimensions of social capital were found to have a profound influence on the succession decision with much focus on familial stewardship as an emerging cognitive driving force.

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Why is it important?

This study is distinct as it introduces a new cognitive construct that helps rationalize the successor-selection decision in a Middle Eastern context. It also goes beyond the succession event to depict potential entrepreneurial behavior triggered by succession.

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