Challenges of Succession on Family Business Success -- Kitchen Model

JOURNAL OF SOCIAL ECONOMICS PAPER ID: JSE 14-25

13 Pages Posted: 6 Aug 2014

See all articles by John Ugoani

John Ugoani

Rhema Univeristy, Nigeria.

Date Written: August 5, 2014

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

JEL Classification: M10, M12

Suggested Citation

Ugoani, John, Challenges of Succession on Family Business Success -- Kitchen Model (August 5, 2014). JOURNAL OF SOCIAL ECONOMICS PAPER ID: JSE 14-25, Available at SSRN: https://ssrn.com/abstract=2476300

John Ugoani (Contact Author)

Rhema Univeristy, Nigeria. ( email )

153-155
Aba-Owerri Road
Aba, AZ Aba 450001
Nigeria
+2348036066338 (Phone)

HOME PAGE: http://ssrn.com/author=1941185

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