Family firms integrate tradition, relationship and aspiration. Family firms have strong commitment, long-term orientation and trust but the convergence between ownership and management and between ownership and family creates emotional entanglements that can pervert decisions and suppress innovation.
One of the greatest challenges that face us is succession. The founders hold on tight, and subsequent generations strain to break free. It is a tug-of-war between retaining the tradition and bringing in the new—a dynamic the authors have termed the succession paradox.
Since only 12% of family-run companies survive to the third generation, clearly feelings won’t be enough to carry the day. Open communication, good governance, and a blending of family values and business professionalism must prevail if long-term survival is to be ensured.
If they work correctly, they can actually perform better than others. It begins with the understanding that succession is not a metaphor—It's a process strategy.
@Mustafa , many thanks for this post. You offer significant assertions with no authoritative references to support your claims🤔!
For example, for who is " understanding that succession is not a metaphor—It's a process strategy." & have you considered metaphorical literatures and arguments about family business succession?