Determinants of family business performance: succession issues and experience as the potential mediators

Wee Yu Ghee, and Mohamed Dahlan Ibrahim, (2013) Determinants of family business performance: succession issues and experience as the potential mediators. In: The 20th International Business Information Management Conference (IBIMA). International Business Information Management Association , pp. 556-571. ISBN 9780982148990


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The characteristics and importance, including the antecedents to performance, of small to medium-sized family owned firms to respective economies is widely known in business literature. While many have studied factors which determine the business performance of family-owned firms, none has investigated how succession issues (ranging from authoritarian owner, communication problem with siblings, incompetencies, motivation to succeed, differences in opinions and decision-making power) and succession experience on part of second or third generation owner (2GO/ 3GO) could affect the links to the performance of such firms. The purpose of this paper is to reaffirm various factors influencing family business performance among sixty family-owed firms situated in Northeastern of Peninsula Malaysia, and establish succession issues and experience as the potential mediators which are contributive to the business well-being. The main data source for the study was self-administered surveys of fifty-five 2GOs or 3GOs, of three major races (Malay, Chinese and Indian) in Kelantan, Malaysia. Descriptive, correlation and regression analyses were conducted to interpret findings. The research shows that management style, relationship among family members, values and beliefs and preparation of heir significantly influence family business performance in this context. Succession issues are found to have partially mediated and succession experience fully mediates the relationship among the antecedents with business performance. Both theoretical and practical implications as well as avenues for future research are discussed.

Item Type: Book Section
ISBN: 9780982148990
Keywords: Family-owned firms - Succession - Business performance Introduction
Faculty: Faculty of Entrepreneurship and Business
Deposited By: En. Pahmi Abdullah
Date Deposited: 17 Apr 2013 09:05
Last Modified: 13 Jun 2013 01:18

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