Strategic Planning in Family Business: A Powerful Developmental Tool for the Next Generation

20 Pages Posted: 10 Sep 2008

See all articles by Pietro Mazzola

Pietro Mazzola

IULM University

Gaia Marchisio

SDA Bocconi

Joe Astrachan

affiliation not provided to SSRN

Abstract

This article addresses the issue of training next-generation family members once they have joined the management team in their family firm. The qualitative analysis of strategic planning processes of 18 Italian family firms shows that involving next-generation family members in the planning process benefits their developmental process. The findings indicate that this involvement provides the next generation with crucial tacit business knowledge and skills, facilitating interpersonal work relationships between incumbents and next-generation leaders and building credibility and legitimacy for the next generation. The comparative analysis of the cases allowed us to identify the five variables that seem to combine in explaining much of the observed differences in the amount and composition of benefits experienced in the 18 firms. Our findings extend current understanding of two understudied topics in family business: the postentry-phase training of the next generation and strategic management in family firms.

Suggested Citation

Mazzola, Pietro and Marchisio, Gaia and Astrachan, Joe, Strategic Planning in Family Business: A Powerful Developmental Tool for the Next Generation. Family Business Review, Vol. 21, Issue 3, pp. 239-258, September 2008. Available at SSRN: https://ssrn.com/abstract=1265304 or http://dx.doi.org/10.1111/j.1741-6248.2008.00126.x

Pietro Mazzola

IULM University ( email )

Via Carlo Bo, 1
Milano
Italy
+3902891412636 (Phone)
+3902891412770 (Fax)

Gaia Marchisio

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy
+39-02-5836.6224 (Phone)
+39-02-5836.6892 (Fax)

Joe Astrachan

affiliation not provided to SSRN

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