TY - JOUR
T1 - The paradox for the family firm CEO
T2 - Owner age relationship to succession-related processes and plans
AU - Marshall, James P.
AU - Sorenson, Ritch
AU - Brigham, Keith
AU - Wieling, Elizabeth
AU - Reifman, Alan
AU - Wampler, Richard S.
PY - 2006/5
Y1 - 2006/5
N2 - The failure of family firms to transition to second and third generations has prompted researchers to examine succession processes. This study proposes that adding demographic and behavioral variables to existing models can enrich theoretical frameworks. Using a structural equation model, it was found that older owner age was positively associated with formal succession plans. However, paradoxically, older owner age was also negatively associated with cooperative conflict management, an approach that was positively associated with the importance of succession planning. Owner age was also positively associated with competitive conflict management, an approach that was negatively associated with formal succession planning. Thus, increased owner age is directly associated with formal succession plans, but indirectly associated with behavioral practices that interfere with succession planning. In addition, the study revealed that, although not related to owner age, both autocratic and relational leadership are positively related to the importance of succession planning.
AB - The failure of family firms to transition to second and third generations has prompted researchers to examine succession processes. This study proposes that adding demographic and behavioral variables to existing models can enrich theoretical frameworks. Using a structural equation model, it was found that older owner age was positively associated with formal succession plans. However, paradoxically, older owner age was also negatively associated with cooperative conflict management, an approach that was positively associated with the importance of succession planning. Owner age was also positively associated with competitive conflict management, an approach that was negatively associated with formal succession planning. Thus, increased owner age is directly associated with formal succession plans, but indirectly associated with behavioral practices that interfere with succession planning. In addition, the study revealed that, although not related to owner age, both autocratic and relational leadership are positively related to the importance of succession planning.
KW - Aging
KW - Conflict
KW - Family firm
KW - Leadership
KW - Succession
UR - http://www.scopus.com/inward/record.url?scp=33645295203&partnerID=8YFLogxK
U2 - 10.1016/j.jbusvent.2005.06.004
DO - 10.1016/j.jbusvent.2005.06.004
M3 - Article
AN - SCOPUS:33645295203
SN - 0883-9026
VL - 21
SP - 348
EP - 368
JO - Journal of Business Venturing
JF - Journal of Business Venturing
IS - 3
ER -