By combining different disciplines such as entrepreneurship, psychology, and business administration, this paper provides insights into the decision-making process involved in the succession of agricultural family businesses. It offers an overview of how choices and decisions are influenced among all actors involved in the process, including the incumbent, successor, non-succeeding family members, and both informal and formal advisors. This overview creates practical insights to support a more successful business succession process. Decision-making in business succession is influenced by several factors such as business systems and culture, as well as mutual relationships, personality traits, behavioral patterns, and habits of those involved. Communication and trust, between both succeeding and incumbent family members, are important aspects that can lead to a successful process. When family relationships are strong, there is a better chance that the social-emotional aspects of business succession do not become a bottleneck. Financial, tax and legal issues can often be resolved if the social-emotional foundation is solid.
DOCUMENT
PurposeThis study explores how and when intuitive forms of planning can be used in a family firm's succession process.Design/methodology/approachThe study uses an extended focus group meeting, consisting of individual, group and subgroup discussions with seven highly experienced external family business advisors in the Netherlands to gain a holistic understanding of the succession process and its underlying logic. The study also employs pre- and post-group questionnaires.FindingsThis study reveals that advisors perceive intuitive forms of planning as an integral part of the succession process, with the latter containing both intuitive and formal logic and activities. Both logics are used situationally and flexibly to deal with the uniqueness and unpredictability of the succession process and to build strong relations and manage relational dynamics in business families to address tasks, dilemmas and contingencies.Originality/valueThe succession process is an important part of business families' achievement of transgenerational intent. Creating commitment among potential successors begins when they are children, and understanding the role of the more intuitive forms of planning during the succession process will provide us with a more holistic perspective on its dynamics.
DOCUMENT
Entrepreneurship is often used as a synonym for starting up a new business. Existing SMEs — from purchasing to succession — are all too often left out of the picture. This booklet tells the stories of those involved in handing over their businesses to the next generation. It’s an honest and straightforward account of incumbents and their young successors. Ten case studies show the complexity of the succession process from a range of perspectives. The new generation of business owners show that they are go-getters who aim for growth and are eager to renew the firm. With some support they are capable to run the business — often to the surprise of the incumbents. Being better educated the successors bring in new abilities, like digital skills, recognize new opportunities and markets and seem to have a stronger strategic orientation. Incumbent often value their contributions, but sometimes the new ideas lead to tensions. It seems special programmes and graduation projects on business acquisitions and family succession help to ensure hand-overs more quickly. The first step though is to start a dialogue with the current owner — that will often be the current boss or the parents. Incumbents often give their successors some freedom, but they expect initiatives to come from the younger generation and a strong commitment. Because running a business isn’t just a part of your life — it is your life.
LINK
This paper investigates whether students change their entrepreneurial entry preference if they are presented with different options. We propose that students’ entry preferences are mediated by concepts proposed by threshold theory: choice options, opportunity costs and psychic income. This study is exploratory in nature, analyzing a small sample of 31 student essays both quantitatively and qualitatively to test our propositions. Though lacking a control group, enrolment in a six-week module on entry mode options by a group of third year Bachelor students at a Dutch university resulted in some interesting changes—in particular, toward greater clarity in the entrepreneurial entry mode preference as well as a shift toward takeover options (including firm acquisition and family succession). However, thematic analysis of students essays reveals that the perceived ability to act on such preferences may still be limited by opportunity costs (i.e., the higher need for financial capital) and a self-perceived lack of human capital (entrepreneurial or management experience).
DOCUMENT
There is more to be learned from nature as a whole. In practice ‘nature’ is often used in teaching, training, consultancy and organisational development as a metaphor, as a source of inspiration or as an example for all kinds of processes, including leadership, cooperation, relationships and the development of organisations and society. Mainly ecological, and much less frequently biological, processes are generally involved here. The question has gradually arisen whether we can learn more from nature in the social environment than what we ‘see’ on the surface - which is often translated in metaphors. Seen more holistically, this is about the systemic side, the complexity, the context and the coherence. For example, can we demonstrate that applying fundamental ecological principles, such as cycles (learning, self-organising, selfregulating and self-sufficient capacity), succession, diversity and resilience, social and cooperative behaviour, interconnectedness and interdependency within an organisation leads to a sustainable organisation? Mauro Gallo is conducting research into the significance of technical innovation in and for the agricultural and food sector, and into the question whether biomimicry can in fact be backed up in such a way that it contributes to the social sciences domain. At the same time there is a clear teaching issue: Is it logical from the perspective of our green DNA to include biomimicry thinking in our teaching? Is it possible to learn to apply biomimicry, and can biomimicry be applied in teaching/learning? (How) can we apply biomimicry in green VMBO and MBO, pass it on to the teachers of the future in teacher training courses and include it in making current lecturers more professional? Is it conceivable that it could become an integral component of the curricula in green HBO?
DOCUMENT
There is more to be learned from nature as a whole. In practice ‘nature’ is often used in teaching, training, consultancy and organisational development as a metaphor, as a source of inspiration or as an example for all kinds of processes, including leadership, cooperation, relationships and the development of organisations and society. Mainly ecological, and much less frequently biological, processes are generally involved here. The question has gradually arisen whether we can learn more from nature in the social environment than what we ‘see’ on the surface - which is often translated in metaphors. Seen more holistically, this is about the systemic side, the complexity, the context and the coherence. For example, can we demonstrate that applying fundamental ecological principles, such as cycles (learning, self-organising, selfregulating and self-sufficient capacity), succession, diversity and resilience, social and cooperative behaviour, interconnectedness and interdependency within an organisation leads to a sustainable organisation? Mauro Gallo is conducting research into the significance of technical innovation in and for the agricultural and food sector, and into the question whether biomimicry can in fact be backed up in such a way that it contributes to the social sciences domain. At the same time there is a clear teaching issue: Is it logical from the perspective of our green DNA to include biomimicry thinking in our teaching? Is it possible to learn to apply biomimicry, and can biomimicry be applied in teaching/learning? (How) can we apply biomimicry in green VMBO and MBO, pass it on to the teachers of the future in teacher training courses and include it in making current lecturers more professional? Is it conceivable that it could become an integral component of the curricula in green HBO?
DOCUMENT
This study focuses on the transfer process and the importance of human capital and succession planning as firm resource from the seller’s perspective. It further differentiates amongst two types of human capital - specific and generic - to predict the transfer duration, obtained price and satisfaction with the transfer. A representative dataset of 112 Dutch small firm owners, who sold their firm in 2005 and 2006, is analyzed. Hierarchical multiple regressions show that specific human capital, like flexibility, social skills and market awareness predict transfer performance better than generic human capital like general education. Results also indicate that succession planning in business transfers is unrelated to the objective transfer performance indicators transfer duration and obtained price. Succession planning is strongly related to the subjective transfer performance indicator satisfaction. Results also show that familiarity between seller and buyer rather than kinship or family ties is a key predictor for all transfer performance indicators.
LINK
The world is changing in many ways. Digital developments follow each other in quick succession and have an impact on many existing structures. The future may be uncertain, but we can still learn from what has happened in the past. We usually know what we don’t want, but few of us know yet what we do want. Still, this is something we can only discover for ourselves, I think. Who are we? To what extent are we individuals and to what extent are we part of a collective? Remarkably, in these questions we can also find parallels with the Middle Ages.
LINK
Er is weinig bekend over de verschillen in de ondernemersprofielen van starters, overnemers en opvolgers. Als voorbereiding op een grootschalig onderzoek van de HU/KvK Nederland is de literatuur op dit gebied bestudeerd.
DOCUMENT
The main purpose of this dissertation is to identify the factors that explain success and failure in SME business transfers. Three key concepts have been defined in the research framework: firm resources, capabilities (of predecessor and successor) and (successor’s) strategic renewal. Altogether these three key concepts serve as predictors for the transfer outcomes: exit choice, transfer duration, obtained price, satisfaction and the post-transfer firm performance. Testing reveals that both firm resources and owner capabilities are of importance for exit choice. Results indicate further that especially “acquisition experience” and “years of ownership” predict the exit choice in well performing firms. In poorly performing firms, firm resources prevail as the predictors for exit choice. Most consistently, owner capabilities like “familiarity with the successor” and “flexibility” and not firm resources predict success during a transfer. The firm resource “succession planning” predicts only the level of satisfaction with the transfer. Regarding owner capabilities, a distinction is made between generic and specific human capital. Results indicate the importance of specific human capital (owner competencies and experience) rather than generic human capital (level of education). All types of renewal (i.e. product/market innovation, organizational change or a combination of the two) after succession show better post-transfer firm performance compared to no changes in the first two years.
LINK
