Authors: Jasmine Tata, Sameer Prasad
Addresses: School of Business Administration, Loyola University Chicago, 820 North Michigan Avenue, Chicago IL 60611, USA. ' Department of Management, College of Business and Economics, University of Wisconsin-Whitewater, Whitewater, WI 53190, USA
Abstract: Building relationships with individuals and organisations and accumulating social capital is critical to the success of a family firm. During times of succession, however, family firms have to deal with the difficult task of transferring social capital from the incumbent to the successor. Existing literature on succession planning focuses largely on the transfer of physical and human capital and ignores the development and transfer of social capital within family firms. Hence, the purpose of this paper is to explore an alternate perspective of next-generation succession in family businesses. Specifically, we examine the importance of the incumbent|s and successor|s social networks and develop a conceptual model that depicts the connections between the optimum configuration of post-succession social capital in the family business, transferred social capital (i.e. social capital that is transferred from the incumbent to the successor), and new social capital brought into the position by the successor.
Keywords: next-generation succession; relationships; incumbents; successors; succession planning; social networks; transferred social capital; post-succession social capital; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship; family firms; corporate governance; succession issues.
International Journal of Entrepreneurship and Small Business, 2010 Vol.11 No.3, pp.322 - 337
Published online: 05 Oct 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article