• Korean small business review
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• v.39 no.1
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• pp.1-39
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• 2017

The first generation of the business that had been founded in 1960~1970s faces the situation to consider the succession of the family business developed by devotion of their whole lives in the critical timing to the next generation. In the process of selecting the party of family business succession, it is required to consider a variety of succession types including smooth transfer to the other family member or the employee of the company, selling the company, or hiring external specialist. Foreign countries acknowledge the importance of the succession in the family owned company to perform multiple studies on the influential factors to the succession, distinction, and types of family business succession; and they utilize the results for the related policy development and the support of family owned business succession. However, few studies have been conducted on the succession of the domestic family owned business and majority of them are related to the types of succession. Considering its share and influential power in the domestic economy, it is necessary to develop the guideline and the policies to solve many issues on the succession of the family owned business by systemic studies. Hence, the impact of the main characteristics in the family owned business on the types of its succession was analyzed in this study focusing on five domains of Socioemtional Wealth (SEW) in view of Behavioral Agency Theory by Gomez-Mejia et al. (2007) using the data from 540 family owned small-to-medium sized businesses so as to analyze the issues on their business succession. Upon the empirical analysis results, it was confirmed that they were influenced to the selection of succession type by family succession > internal employee succession > external succession, for the variables of social contribution which were non-financial characteristics, internal employee succession > family succession > external succession for the intellectual properties, and family succession > external succession for the management participation of the family. The distinction of social contribution were influenced the most to the selection of the succession types. Financial factors, business performance, and R&D investment variables were not significantly influenced to their selection of the succession types. In case of simultaneous management, the family succession rate was high and it showed the control effect to strengthen selecting family owned business with R&D investment, social contribution, and company history variables. The behavioral agency theory used in this study was confirmed with high explanation power on the family owned business succession. The family owned business showed the tendency to maintain SEW, and non-financial factors such as accumulated know-how and social contribution based on the long term history were significantly affected to the succession in the small-to-medium sized family owned businesses, unlike general large sized listed companies. The results of this study are expected to be helpful practically for the succession of the family owned business and to suggest the guideline for the development of governmental policy.

• Asian Journal of Innovation and Policy
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• v.8 no.2
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• pp.302-324
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• 2019

Family business is the oldest and the most prevalent type of entity in the world. In India, 85% of the enterprises are owned and/or managed by families, contributing to two-third of GDP. Thus the survival of family firms, which also generates 79% of private sector employment, is of paramount importance. Effective succession planning and innovation to gain competitive edge are the two key ways to ensure family firm survival. In this paper, the interplay between family succession and innovation is qualitatively studied using case study approach. Successors and Predecessors are interviewed to gain insights in the areas of succession planning and innovation. It is observed that family succession has a positive relationship with innovation, i.e. the presence of founding family members in the ownership and/or management of the enterprise has a positive influence on innovation tendency of the family firms. The findings contribute to the family business literature on succession planning and innovation, and their inter-relationship.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.199-206
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• 2021

This study investigated the main concerns and strategies in Indonesian large family businesses to undertake intergenerational succession effectively. The research data was obtained to shed light on the incumbents' mindsets, key preferences, and experiences during the succession process. Access to incumbents of large family businesses that are conglomerates is scant. The preceding survey research was conducted to sensitize with the intricacy of the intergenerational succession process in large family businesses before entailing interpretative phenomenology analysis of qualitative data from interviews, observations, and field notes by approaching family members in five conglomerate groups that have major impacts on the economy. The findings explicate the incumbents' preferred criteria in choosing their successors as well as their perceived concerns revolving around the appointment. Additionally, the incumbents' succession approaches such as apprentice learning by successors, adaptability to external forces by successors, nurturing the entrepreneurial spirit in successors, governance establishment in the firms, business interest stimulation in successors, role modeling by incumbents, and collaboration between family and key non-family members are elicited during the intergenerational succession process. This study concluded with noteworthy implications for incumbents and successors in large family businesses, especially providing explicit criteria and strategies to appoint suitable successors, and suggesting potential avenues for future research.

• Journal of Information Technology Applications and Management
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• v.30 no.2
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• pp.31-44
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• 2023

Family businesses play a significant role in the overall economy of all countries, and the importance and weight of family businesses are increasing in various fields. Many factors are essential for a family business to grow into a long-lived business, that is, a sustainable business, but the most important one is succession. TRUST Lab at Hanyang University studied the importance of factors influencing the succession of the family business from the standpoint of the successor. As a result, it was confirmed that mutual trust is the most crucial factor, and conflict can destroy that trust. Therefore, in this study, we research conflict as a central topic for successful succession, which is the most fundamental reason for family businesses. This study was conducted as a qualitative research case study. By setting criteria suitable for the purpose of the study, we conducted interviews with ten successors who either worked or planned to work in a family-related company. Through this study, conflict management of key players is the most important to achieve a continuous succession of family businesses.

• 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.

• The Journal of the Korea Contents Association
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• v.18 no.9
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• pp.375-389
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• 2018

A successful succession of family businesses is a very important issue that greatly affects the sustainability of the business. Among the factors affecting successful succession, the successors of the family business were identified on the entrepreneurship held by small business owners and on the management performance of the business. This study was analyzed empirically by the managers who currently run the actual business through completion of or process of succession. Successive factors were established as a place for education and succession of heirs, and entrepreneurship was divided into innovativeness, risk-taking and pro-activeness, and management performance was divided into financial and non-financial achievements. The analysis shows that the education and training of successors among succession factors have significant implications for both managerial performance and entrepreneurship, and that the success of successors has no significant impact on non-financial performance, innovativeness and pro-activeness. In addition, while the risk-taking nature of entrepreneurship was concerned with the performance of management, innovativeness and pro-activeness were not all significant. According to this study, the education and training of successors and the determination of successors in succession family businesses have a significant impact on management performance and entrepreneurship.

• Journal of Information Technology Applications and Management
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• v.25 no.3
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• pp.1-15
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• 2018

This study is to find effects between the level of preparation of factors and the satisfaction of successors. Independent variables are the level of preparations of successors and divided by three detailed type, the level of preparation of management ability, the level preparation of positive succession attitude and the level of preparation of ownership succession. A dependent variable is the satisfaction of successors and a moderating variable is the level of communication between successees and successors. This study was undertaken in South Korea among 59 successors in 59 family firms. A total of 53 samples were available to use for the research. The empirical results indicate that the level of preparation of successors, management ability, positive succession attitude and ownership succession, is associated to the satisfactions of successors. Additionally, the moderating variable has not the relationship to the dependent variable as a moderating variable, but the result showed a strong relationship between the level of communication and the satisfaction of successors.

• The Journal of the Korea Contents Association
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• v.22 no.7
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• pp.240-252
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• 2022

A lot of research has been done on the succession of family businesses. However, there has been little discussion and policy approach on the succession of small enterprise. Since '19, the government has established a policy on the concept of small enterprise succession. Therefore, the time has come for a research system to establish the concept of small enterprise succession. Accordingly, this study tried to apply it to small enterprise based on the existing discussion on family business succession. As a result, even for small business owners, the internal factors of enterprise, spirit, and craftsmanship had an important influence on succession. However, small enterprise have a characteristic that ambiguity of authority occurs because they are not yet systematized. Also, role ambiguity occurs in performing various roles, which can be viewed as a characteristic of small enterprise. Prior to empirical research on the family business succession of small enterprise, this study tried to present the basis for the need for research in this field by presenting the definition and conceptualization of small enterprise succession through case study.

• Journal of Digital Convergence
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• v.12 no.7
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• pp.95-101
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• 2014

In this study, we look at the current state of the inheritance system of family business in korea, you are trying to present a remedy for the activation of family business succession. The family business inheritance tax assistance benefits at the time, it is necessary to define the effect that offers the advantage of tax support to reflect correctly, the scope of its application subject property, easy to match the requirements of the family business succession is family business succession Small Business issue of effectiveness of the system has not emerged, there is a need to strengthen the requirements of family business succession that takes into account the reality of small and medium-sized enterprises. In addition, if you provide the inheritance tax deduction for the inheritance of the family business, only to inherit the family business of a substantial tax advantages help to move back, the provisions of the post-management is necessary.

• Journal of Practical Agriculture & Fisheries Research
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• v.10 no.1
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• pp.3-27
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• 2008

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 of the year 2008 and their parents. This study also 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), as a state college, 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.