| Confucianism and Succession in Chinese Family Business |
| | Yan, Jun | Texas Tech U. | juyan@ttu.edu | 806-742-3461 |
| | Sorenson, Ritch L. | Texas Tech U. | ritch.s@ttu.edu | 806-742-2173 |
| | This paper takes a multi-level approach to study the possible influence of Confucianism, a traditional Chinese ideology, on the succession process in Chinese family-owned firms. It reviews Confucian ideology relevant to family values and interpersonal relationships and the research about the influence of Confucianism in Chinese businesses. Then, it analyzes the possible influence of Confucianism on resistance to succession at four levels--individual, family, firm, and networking environment. Discussion and analyses are summarized in propositions which, in general, propose that the more a family adheres to Confucian ideology, the less resistance there will be to succession. |
| | Keywords: Succession; Ethnicity; Confucianism |
| Entrepreneurial Succession: The Role of Firm Success, Power, and Position |
| | Boeker , Warren | U. of Washington | wboeker@u.washington.edu | (206)-543-8731 |
| | Studies of new venture management have long recognized that the attributes which make a successful entrepreneur are not necessarily the same as those which make an effective corporate leader. Conventional wisdom and much of the entrepreneurship literature holds that rapidly growing new firms quickly outgrow the managerial capabilities of the founding team, at which point the founders may need to step aside or be replaced by 'professional managers' if the firm is to remain successful. Recent internet startups such as Netscape, Pointcast, and Yahoo! provide some of the most prominent examples of firms where founders have been replaced or professional managers brought in.
This study explores the conditions under which the founding managers of new ventures are replaced in the computer and semiconductor industries. Our results indicate a U-shaped relationship between firm performance and founder replacement: Very successful firms replace founders with executives who can better manage rapid growth, while poor performing firms replace their founders in hopes of finding a manager who can succeed in turning the new venture around. We propose that the power and influence of the founders can help them retain their position and examine how ownership and board composition act as sources of influence which can either support or oppose founding managers. We also how differences among founding managers in their functional role, hierarchical position, and board membership influence the likelihood that they will be replaced.
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| | Keywords: Entrepreneurship,; Power,; Top management teams |
| Smoothing the transition to new ownership: a study of succession planning by small, family-oriented businesses |
| | Mclaughlin, Josetta Shoemaker | Radford U. | jmclaugh@runet.edu | 540-831-5192 |
| | Baynton, Richard A. | "Dick" Baynton, Industry Consultant | rbaynton@rbnet.com | 540-992-4156 |
| | Results of this study reveal that small, family-oriented businesses with annual sales of less than $15 million
generally fail to plan for succession. There are no differences in the likelihood of having or not having a
succession plan based on company age or on the presence of a buy-sell agreement.
However, size of the firm defined by a combined count of full-time and part-time employees is related to
having a succession plan. Also, in cases where a family transfer is anticipated, fewer firms have succession
plans than would be expected. Female heirs are less likely than male heirs to be cited as the successor.
Business owners rely primarily on accountants and attorneys for advice on succession planning but also
rely to some extent on family. Reasons for not preparing for succession include procrastination due to
daily demands, euphoria due to favorable current conditions, desperation due to poor business conditions,
and a sense of immortality. Findings indicate that small, family-oriented businesses are in need of new,
creative approaches to critical succession planning assistance. Based on results of the study, recommendations
for assisting small, family-oriented businesses in succession planning are presented. |
| | Keywords: planning; succession; small-business |