The aim of this study is to examine the relationship between successor characteristics, transfer planning characteristics and post-transfer profitability within Dutch SMEs. On the one hand, based on the resource dependency view, it is assumed that successors with more knowledge and experience, derived from work experience from outside the target firm, will be able to extract higher rents from the firm than those with less (diverse) work experience. On the other hand, based on the knowledge management literature, and in particular, concepts such as tacit knowledge, this research makes the contrasting prediction that posttransfer profitability is likely to be higher in firms where the successor is an insider and is related to the predecessor. Moreover, this paper proposes, based on the theory of planned behaviour, that written plan and strategic intent have a positive association with post-transfer profitability. The study is based on quantitative analysis of a random sample of Dutch SMEs. Initial results from the current study suggest that determinants of post-transfer profitability may be quite different in the family-to-family ownership vs. nonfamily ownership transfer conditions (i.e. whether or not the successor is related to the predecessor). Significant interaction effect is found such that the effect of strategic planning, in particular, varies depending on the nature of the transfer relationship (family to family, vs family to nonfamily). Other results offer mixed support for the proposed theories.
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In this study we test if successors timing of the acquisition and his actions account for better firm performance. We surveyed 500 Dutch SME successors two to six years after their acquisition. With ANOVA we tested successors timing (declining, average and increasing economical growth) and actions taken (organizational change, innovation, extending markets, no change). All tested actions improve post transfer performance compared to no action taken. Firms acquired in declining economical conditions perform best. No interaction effects are found between timing and actions suggesting that actions are beneficial to performance in any macro economical condition.
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Different types of strategic renewal by the successor are identified: organizational change, innovation, combined actions and no action. The main assumption is that renewal after succession improves SME post-transfer performance compared to no actions taken. Also successor’s timing of the takeover is observed, looking at the economic conditions in the year of ownership transfer: decline, average or growing conditions. The hypotheses are tested on a random stratified sample of 333 Dutch firms. Univariate analysis of variance (ANOVA) and complementary T-tests show that organizational change, product/market innovation and combined actions all increase post-transfer performance compared to no renewal. Strategic renewal pays off in any economic period, but mostly so in periods of economic decline. The control variable firm size is a significant predictor: the smaller the firm the better the post-transfer performance.
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