Family Owned Business Succession and Governance: a multiple case study in Brazil

Abstract

One of the main threats to the continuity of family owned business is the poor management of the succession process between generations of the family. This risk factor can be avoided when the process works properly and can also become a renewal and strengthening tool for organizations. The aim of this study is to evaluate the different factors that trigger the succession, as well as the various ways in which companies act and react to the process and the succession’s turbulence. The methodology used was a qualitative study of multiple cases in four representatives family owned organizations in south of Brazil. These families are going, either have passed or have chosen not to go through generational succession processes. The results show the process can be an opportunity to improve the company’s management. Moreover, it shows that there is no single model to follow, but good practices that can be applied to each case.

Keywords

• Family Owned Business
• Corporate governance
• Family Succession
• FOB