Succession in family firms - next generation perspective and use of qualitative research methods

Abstract

Succession is a cornerstone issue in family firm business. Research confirms that only 30% of family firms successfully undergo the process of transition from first to second generation successfully, and only 10-15% transit from second to third generation. Research shows that “next generation perspective” is key to successful generational transitions. Within this issue, “daughter perspective” has recently gained special attention due to underrepresentation of women, in general, and daughters, in particular, in family businesses. This underrepresentation is alarming as family firms are losing valuable human capital. In this paper a systematic review of literature in three areas is done: “next generation perspective on succession”; “daughter perspective on succession” and “women in family firms” in order to gain insights into progress researchers have made in these areas and methods of research that contributed most. Contrary to predicted, it was found that qualitative research methods are of special use in area of “daughter perspective”. Results are discussed.