Succession Planning in a Family Company: What are the Key Predictors?

Abstract

This study aims to explain the role of family welfare needs and the quality of the relationship between CEOs and successors as predictors of succession planning in family companies. Family welfare needs are the perception that the purpose of establishing a family company is primarily for the continuity of the family. Participants were 45 owners of companies in Makassar and in Jakarta. The results of the study indicate that the role of family welfare needs is more significant in predicting succession planning, compared to the quality of the relationship between the CEO and the successor.