Strategic Configurations for Successful Succession in Family Businesses: A Mixed-Methods Study Using Case Research and fsQCA

Strategic Configurations for Successful Succession in Family Businesses: A Mixed-Methods Study Using Case Research and fsQCA

Title

Strategic Configurations for Successful Succession in Family Businesses: A Mixed-Methods Study Using Case Research and fsQCA

Authors

• Tase-Lung Chen
  Department of Business Administration, Asia University
  No. 500, Liufeng Road, Wufeng Dist., Taichung City 41354, Taiwan
• Fang-Yi Lo
  Department of International Business, Feng Chia University
  100, Wenhwa Rd., Seatwen, Taichung, Taiwan
• Cheng-Feng Cheng
  Department of Business Management, National Taichung University of Science and Technology
  No. 129, Section 3, Sanmin Road, North District, Taichung City 404336, Taiwan
• Tain-Fung Wu
  Department of Business Administration, Asia University
  No. 500, Liufeng Road, Wufeng Dist., Taichung City 41354, Taiwan
• Wing-Keung Wong (Corresponding Author)
  Department of Finance, Quantum AI Research Center, Fintech & Blockchain Research Center, and Big Data Research Center, Asia University, Taiwan
  Department of Medical Research, China Medical University Hospital, Taiwan
  Business, Economic and Public Policy Research Centre, Hong Kong Shue Yan University
  The Economic Growth Centre, Nanyang Technological University, Singapore
  No. 500, Liufeng Road, Wufeng Dist., Taichung City 41354, Taiwan (R.O.C.)

Abstract

Family businesses have long been a vital business type and a key economic pillar in Taiwan. After decades of family business development, business owners have encountered succession challenges. The succession of a company not only involves internal family matters but also significantly impacts the company’s long-term sustainability. In the process of passing down the business, family business owners strive to develop a successful succession strategy that considers both the interests of the business and the family. They carefully select suitable candidates to ensure a smooth transition to the successor role. This research explores the model of building a successor in a family business and formulates a success strategy for family business successors. The research consists of two studies. In-depth interviews were conducted with nine cases in the first study, and the information gathered was analyzed using a grounded theory approach. The first study identified five key elements: company, family, first-generation company owner, successor, and culture. In the second study, a questionnaire was developed based on the above elements. Factor analysis was performed on questionnaires from CEOs, resulting in the extraction of six major factors: business management, corporate culture, succession training, family benefits, succession candidates, and willingness to shift power. Subsequently, the fsQCA method was employed to identify five well-performing configurations that achieve succession performance, serving as a reference for developing a successful strategy for family business successors. The study’s findings provide valuable insights for family businesses and successors.

Keywords

Family business, FsQCA, In-depth Interviews, Succession, Successful Strategy

JEL Codes

M10, M12, M14, L20

How to Cite

Chen, T.-L., Lo, F.-Y., Cheng, C.-F., Wu, T.-F., & Wong, W.-K. (2021). Strategic Configurations for Successful Succession in Family Businesses: A Mixed-Methods Study Using Case Research and fsQCA. The International Journal of Finance, 33(1), 1–16.