• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.285-293
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• 2022

Issues relating to business inheritance are a primary focus for business owners. Business inheritance is critical to ensuring that the business can be managed by the next generation and family members can benefit from the earnings and revenues. Therefore, preliminary planning must be done while the business owner is still alive by selecting the appropriate business inheritance mechanism for Muslims in Malaysia. The mechanisms of business inheritance, notably faraid, hibah, amanah, and hibah amanah will be examined in this paper from both a civil and Islamic perspective. By reviewing written journals and previous research, this research utilizes the library method. According to this study, business succession can be carried out by naming a beneficiary as a partner in the company or by completing the ownership transfer process while the owner is still living. In the other situation, it can be done by anyone among the heirs agreeing to re-register the business as usual. Meanwhile, there are four main instruments in Islamic law that can be used: faraid, hibah, amanah, and commercial hibah. According to this study, each instrument has a different impact on business succession. Entrepreneurs should use these instruments in their firm succession planning.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.3
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• pp.45-56
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• 2017

Considerable research has been done on the issue of succession in family businesses. However the process of induction, of preparing the members of the next generation for joining the family business has not been examined in detail. This paper attempts to analyse the relevance of three critical factors - 'quality of relations', 'willingness of the inductee' and 'the ability to manage tensions harmoniously' - to the induction process and the progress of the business. It focuses on the Indian context, specifically in the Small and medium Enterprise (SME) area. Qualitative research has been carried out. The Case Study method is used and data has been gathered from two families (including two branches of one family), using frequent unstructured interviews, over a period of five years. It is concluded that positive impact on business, family and the inductee depends to a large extent on the quality of relations, willingness of the inductee and the ability of both the inductor and inductee to handle and manage the tensions. Thus the findings of the study extend current understanding about succession drivers to the specific context of eastern cultural and developing economy represented by the Indian family businesses in the small and medium enterprise sector.

• Journal of Venture Innovation
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• v.6 no.3
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• pp.241-263
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• 2023

Recently, the aging of SME managers has emerged as a major issue in business succession. The smooth succession of small and medium-sized enterprises (SMEs), which are the industrial base of Korea, is becoming an important issue for enhancing the vitality of the national economy, such as job creation, beyond mere discussion of inheritance. At this point, this study conducted an empirical analysis on the factors affecting corporate succession intention. As independent variables, corporate Capability consisting of employee competency, marketing competency, and digital competency, human factors such as managers, successors, and third-party stakeholders, and institutional factors such as legislation, taxation, and trust were set. In addition, the effect of adjusting the sales scale was verified. To this end, a survey was conducted targeting representatives who are currently running small and medium-sized enterprises (SMEs). The total number of valid questionnaires was 315. Based on this, an empirical analysis was conducted using the hierarchical regression method. The results of the empirical analysis are as follows. First, marketing competency and digital competency, managerial competency and successor competency, taxation and trust had a significant positive (+) effect on corporate succession intention. However, a significant influence relationship between the third stakeholder, employee competency, and corporate succession intention was not tested. Among the factors that have a significant impact, the size of the influence was in the order of taxation, successor competency, executive competency, trust, marketing competency, and digital competency. Second, the size of sales was found to moderate the relationship between the variables that had a significant effect on corporate succession intention, that is, management competency, successor competency, marketing competency, digital competency, taxation and trust, and corporate succession intention. Based on these research results, academic, practical, and institutional implications for smooth business succession are presented.

• Journal of Family Resource Management and Policy Review
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• v.5 no.1
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• pp.79-95
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• 2001

The purpose of this study is to provide basic data for the future studies on the succession of family business by investing its current condition and related variables in which it is sustained through the transfer of thier ownership and management right. The findings showed that job satisfaction is supposed to depend on the ownership of business-place and number of employees. That is, respondents who have the ownership of the business-place and employ more workers were more satisfied with their jobs than those who rented the work-place and have fewer employees. Variables affecting the whether or not the family business will be inherited are composed of who owned the business-place, how many workers are employed and how satisfied the workers are with their jobs.

• Journal of Agricultural Extension & Community Development
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• v.25 no.2
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• pp.57-70
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• 2018

Farm succession is one of the most important events that substantially influence the viability of a farm business not only for a family farm operation, but also for a farm industry as a whole. This study aims to analyze the factors which affect the probability of existence of a successor, using the nationwide survey data. The probability of having a successor increases with the age of operator, the number of sons, the area under cultivation, organic farming, farm expansion plan, main crop and operator's attitude towards farm succession. Also this study investigates the succession plans of family farms having a successor and land disposal plans of family farms without a successor. 40% of farms having a successor have only vague succession plans and 34.7% of farms without a successor have a plan to apportion their land among their children. Based on these results, this study suggests the necessity of planning for farm succession and successors' agricultural training. In addition, measures for preventing from land fragmentation are needed for realization of effective usage of agricultural land.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.4
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• pp.133-145
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• 2015

This study investigates the relationships between the characteristics of the succession process and organizational performance as well as the moderating roles of strategic HRM practices in these relationships. Data was collected from 256 successors and HR managers(128 for each) in South Korean family businesses where the succession process either had been completed or was currently underway around time of data collected and analyzed. Our results indicate that the provision of successor training is positively related to organizational performance, while the clarity of the incumbent's role after succession, communication of the decision regarding succession, and the incumbent's propensity to step aside are not significantly related to organizational performance. Further, our results confirm (a) the moderating effects of strategic staffing practices between communication of the decision regarding succession and organizational performance, and (b) the moderating effects of strategic staffing practices between the incumbent's propensity to step aside and organizational performance. The theoretical and practical implications of these findings are discussed.

• Journal of Industrial Convergence
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• v.20 no.9
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• pp.11-24
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• 2022

The average age of CEOs of the small and medium-sized enterprises(SMEs) in Korea is 58.8, and discussions are actively underway regarding the support towards the succession companies. Government authorities are also operating a system to support the succession companies, and recently global support is also being demanded. In order to have justification over the support for succession companies, the fact that it greatly contributes to the revitalization of the national economy and the regional economy must be acknowledged in advance. This study analyzed the degree of corporate succession revitalization of the national and regional economy through statistical and empirical analysis. With the purpose to secure the reliability of the analysis, the study has referred to the database of the "Integrated Management System for Small Business Recruitment Project" and the Korea Enterprise Data (KED), which can be the most differentiated aspect compared to the existing research of the past. According to the analysis, it shows that the old companies' performance is significantly higher than the general companies in terms of sales, number of employees, assets, and operating profits⋯etc. The management performance of the old companies (which lasted over 30 years) more than doubles the performance of the start-ups (with less than 10 years of experience) in sales, triples the number of employees, doubles the assets, and more than doubles the operating profit. Thus, it is seen that the contribution to the overall economy is significant. Additionally, as a result of the empirical analysis of the relationship between the regional old companies and the regional economic revitalization, the non-metropolitan area shows better performance than the metropolitan area in terms of the number of employees, assets, borrowings, and rent, which entails policy implications of the polarization between the metropolitan and non-metropolitan areas. In other words, it is found that old companies make a significant contribution to revitalizing the local economy, suggesting that further policies regarding corporate succession are required to support the old companies in the future.

• Journal of Practical Agriculture & Fisheries Research
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• v.24 no.2
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• pp.29-38
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• 2022

The purpose of this study is to understand the importance-satisfaction level for the improvement of the young farmers fostering support policy. According to the analysis result, the respondents answered that the current policy to foster young farmers is important. However, the actual satisfaction level of the project was found to be lower than the importance level. In the 'Keep up the Good Work' area, which is the first quadrant, 'a project to support young succession farmers and settling in farming' and 'a project to select and support succeeding agricultural managers'. It was found that the respondents highly evaluated the importance and satisfaction of the 'Young Succession Farmers Selection and Farm Settlement Support Project' and the 'Succession Farmers Selection and Support Project'. Therefore, it is necessary to gradually expand the project in the future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.2
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• pp.171-186
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• 2023

CEOs who have started and managed small and medium-sized enterprises (SMEs) have a lot of concerns about the sustainability of their businesses in the fierce management field and sometimes have the intention to discontinue their businesses. In this study, the perception of the business environment of SMEs (intensity of competition, difficulty in manpower management), the competency of the corporate (employee competency, product or service competitiveness, digital or technical capability), the competency of the CEO's (management competency and health status of CEO), and the perception of business succession on the CEO's intention to discontinue business were empirically studied with SME CEOs. This study conducted a survey of SME CEOs in various industries from March 20 to April 15, 2022, and verified the research hypothesis using SPSS 24.0 with 296 samples obtained. As a result of the study, the intensity of competition, the difficulty in manpower management, and the perception of business succession had a positive (+) effect on the intention to discontinue the business. On the other hand, the employee competency, the product or service competitiveness, the corporate digital or technical competency, and the CEO's health status had a negative (-) effect on the intention to discontinue business. Meanwhile, it was observed that government regulations also have a moderating effect on the intensity of competition, the difficulty in manpower management, the business succession perception of CEO, and the intention to discontinue business. This study has academic significance in that the concept of 'discontinuing business', which was fragmentarily scattered according to various preceding studies, was systematized based on the level of ownership change and voluntariness. And that it empirically analyzed factors related to the intention to discontinue business targeting SME CEOs. In addition, that it observed for the baby-boomer CEOs in Korea the factors influencing the intention to discontinue business and that it was confirmed that considering their age, organizing the business stable and handing it over to the successor was another positive concept of business discontinuation.

• Journal of Practical Agriculture & Fisheries Research
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• v.11 no.1
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• pp.137-158
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• 2009

This study is to find the causes of the current situations of conflict between generations in regards to succession of their family farm, for the target group of graduates Korea National Agricultural College of the year 2008 and their parents. This study aims at finding a way of controlling and solving the conflicts, and of developing a course of education and training, so that through this process they can come to a rational conclusion to the conflicts that arise regarding succession of the farm, in a climate of harmony and peace. It is found that communication between parents and graduates has normally gone on well, but specific problems related to management of the farm are often present. Furthermore, there is often lack of trust and promise between the parties which often causes difficulties in preparation for the succession of the farm. On the basis of these observation, we have designed and implemented an education workshop and training, as a program in which parents and their successors participated. As a result, we found it to be very effective, but it was also found to be in need of some changes. The workshop is to be implemented in two separate stages. The first stage should focus on communication and trust between family members. Firstly, they are given the opportunity to share the list of concerns withone another, as an ice breaking activity. Secondly, they can present their own hopes or wishes. And lastly, they can communicate with one another in an effort to find resolutions that will be keep both parties satisfied. The second stage should be aimed at establishing agreements concerning succession of the farm in a harmonious and peaceful manor; the second stage is also an opportunity to discuss 'Farm management and succession'. The Korea National Agricultural College (KNAC) is in the pursuit of fostering agricultural CEO's for the future of Korea. KNAC is currently implementing a very unique system of interviews in which parents participate together with students, in order to help them make a plan for rational management of their farm and smooth succession of the farm. Although KNAC now has students present a blueprint of their own unique business plans as a graduation thesis, it is necessary for KNAC to complement this system with education and training regarding the succession of family farms. Furthermore, KNAC should also develop an education and training program that is separate for this purpose, and make it a regular course of study of KNAC in the future.