American Journal of Social Science Research
Articles Information
American Journal of Social Science Research, Vol.1, No.3, Aug. 2015, Pub. Date: Jul. 3, 2015
Challenges of Succession on Family Business Success-Kitchen Model
Pages: 163-168 Views: 1222 Downloads: 638
Authors
[01] John N. N. Ugoani, College of Management and Social Sciences, Rhema University, Aba, Nigeria.
Abstract
A family business refers to one that is owned and controlled by one or more families. Such businesses are usually under the overbearing influence of the founder who mostly runs away from agency costs by the unwillingness to involve professional agents. Such family businesses though often profitable have always suffered setbacks due to the absence of definite succession plans that would ensure their survival. Some polygamous founders adopt what can be described as the kitchen model to evolve succession. The research designed to explore the challenges of succession among family businesses adopted the survey method. 350 respondents were asked to fill researcher designed questionnaire about aspects of managerial technique. Personal interview was also conducted to supplement data generated. Data were analyzed through ANOVA. It was found that the absence of succession plan has negative effect on the success of family businesses. Six recommendations were made based on the result.
Keywords
Family Business, Succession, Agent-Led, Owner-Led, Kitchen Model, Polygamous
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