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Edited by Panikklos Zata Poutziouris, Kosmas X. Smyrnios and Sabine B. Klein
Chapter 13: Founder–Successor’s Transition: A Model of Coherent Value Transmission Paths
Ercilia García-Álvarez and Jordi López-Sintas In this chapter we delineate a model that presents the diﬀerent coherent options of value transmission and successor’s socialization that facilitate family business continuity from ﬁrst to second generation. Our ﬁndings are grounded on combined qualitative and quantitative techniques from an extensive research project of in-depth cross-case analysis. Thus, based on our results we now highlight some issues that families and practitioners should take into account to keep the coherence during the succession process. That is, professionals can assist families in preparing the continuity by (1) identifying family value systems, (2) analysing key variables at play in the family-business system, and (3) proposing a coherent option of continuity that both family and business can pursue. Consequently, families and practitioners can beneﬁt from following the paths suggested here as they are coherent combinations among values and characteristics belonging to each family business and diﬀerent successor’s socialization processes that increase the probability of achieving a successful founder–successor’s transition. Introduction Some years ago Hambrick and Mason (1984) pointed out that organizations are shaped by their top managers. In this vein the CEO’s role has been described as the most powerful, representing the ultimate decision-maker and the person with absolute authority (Kesner and Sebora, 1994). Parties external to the ﬁrm are likely to view succession as a signal about the institution’s future (Beatty and Zajac, 1987), this makes CEO succession a critical event for virtually every organization (Chaganty and Sambharya, 1987; Davis,...
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