The family business failure paradox in the retail industry

Gichuki Fredrick Gitahi and Ábel István (2023) The family business failure paradox in the retail industry. Prosperitas, early access. ISSN 2786-4359 (Online)

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Abstract

Family firms have continued to register low survival rates. Across the world, research puts the survival rate of family businesses beyond the third generation at a mere single digit. The dilemma is also that despite the high failure rate of family-owned firms, the world’s most enduring companies also belong to this class. What do they do differently from the majority of their peers? Succession planning tops the list of the 21st century’s paradoxical challenges facing family business enterprises. Past studies have been barely conclusive on whether and how succession planning, or the lack of it, affects business economic performance. The current study assesses the effect of succession planning on business economic performance. The study used a deductive approach, a survey research strategy, and an explanatory research design to fulfil its objectives. Data analysis was done through descriptive as well as inferential analyses. Regression analysis results indicated that succession planning is a statistically significant determinant of business economic performance. The study recommends that firms should improve their measures targeted towards the prior identification of roles and leadership positions that require successors. The study also recommends the enhanced preparation, grooming, and development of identified successors.

Tudományterület / tudományág

társadalomtudományok > gazdálkodás- és szervezéstudományok

Institution

Budapesti Gazdasági Egyetem

Item Type: Article
Creators:
CreatorsORCIDMTMT szerző azonosító
Gichuki Fredrick Gitahi0000-0002-1280-0887
Ábel István0000-0001-6310-7890
Uncontrolled Keywords: family business, succession planning, business economic performance, business survival
Depositing User: Eszenyi-Bakos Kinga
Identification Number: 34194359
DOI id: https://doi.org/10.31570/prosp_2023_0077
Date Deposited: 2023. Dec. 04. 10:50
Last Modified: 2023. Dec. 06. 09:50
URI: http://publikaciotar.uni-bge.hu/id/eprint/2192

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