Exploring how communication dynamics affect the succession process within family businesses

Abstract

Strategic management and organisational research has identified several challenges threatening the achievement of the succession process in family businesses as organisations governed by the family, business and ownership social systems. The exploration of the under-theorised role of communication dynamics as a means to satisfy the expectations, address the emotional needs and succession readiness of incumbent owners and successors during the succession process provides a much-needed insight into the better management of the succession process and the different relationship dynamics of family businesses involved in the succession process. A qualitative investigation of the experiences and perspectives of a number of family business founders and second and third generation successors, within different stages of the succession processes was undertaken through semi-structured interviews. The participants were recruited from five family businesses, operating mainly within the food production, oil and gas, and pharmaceutical industries. The study enables the evaluation of contexts surrounding the communication dynamics between incumbents and successors through the research question Which communication dynamics affected/are affecting the succession process? This entailed a consideration of the way the founders and the successors viewed the family businesses, whether and through what approach successors were factored in future-oriented discussions and the familial and non-familial relationships as the backdrop where communication dynamics are shaped. The findings related to the second research question How was/is the succession process affected/being affected by the communication dynamics? expanded knowledge of the phenomenon through an evaluation of the characteristics and quality of such dynamics. This entailed analysis of the preparation and involvement of the successors as well as the founders’ ability, or lack of, to pass on the leadership baton of the family business they created. The complications arising from the reconciliation of roles of the owners as fathers and business leaders provide a further level of insight into the effect of the communication dynamics on the older and younger generations during the succession process. The findings from the third research question How were/ are aspects of communication during the succession process managed / being managed investigated how, in practical terms, the founders and upcoming generation laid significance on the age and maturity of the successors, the timing and planning of succession-related decisions and the overall attributes of the familial relationships to handle the communication dynamics and any related issues during the succession process. The investigation of communication dynamics through the lived experiences of incumbents and successors at different stages of succession of the family business highlight the realities and practicalities surrounding such communication and are of particular value to family business research within a Maltese context