Four Bases of Family Business Successor Commitment: Antecedents and Consequences

Posted: 17 Nov 2009

See all articles by Pramodita Sharma

Pramodita Sharma

Wilfrid Laurier University; University of Vermont - School of Business Administration

P. Gregory Irving

Wilfrid Laurier University - School of Business & Economics

Date Written: 2005

Abstract

Four bases of family business successor commitment are explored: affective (based on perceived desire); normative (based on perceived sense of obligation); calculative (based on perceived opportunity costs involved); and imperative (based on perceived need).Models of antecedents and expected behavioral outcomes of each are developed. In addition, related propositions are presented as well as contributions to the literature, research, and practical implications. The investigation provides an understanding of the attitudes that compel next-generation members of family-owned businesses to pursue a career in their family firms. Conclusions indicate that whether or not a successor's commitment to a family business is good or not depends mostly on what mind set underlies the commitment and why the family member decided to pursue a career in the family firm.The model developed will aid in developing a commitment profile or index for all family members that will assist in making career decisions for next generation family members, succession decisions for senior generation family members, and decisions concerning the extent to which entrepreneurs decide to involve family members in their ventures. (JSD)

Keywords: Family networks, Family-work relations, Succession, Attitudes, Behavior (individual), Commitment, Employment, Families, Family firms

Suggested Citation

Sharma, Pramodita and Irving, P. Gregory, Four Bases of Family Business Successor Commitment: Antecedents and Consequences (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1505906

Pramodita Sharma (Contact Author)

Wilfrid Laurier University ( email )

75 University Ave W
Waterloo, Ontario N2L 3C5
Canada

University of Vermont - School of Business Administration ( email )

Burlington, VT 05405
United States

P. Gregory Irving

Wilfrid Laurier University - School of Business & Economics ( email )

Waterloo, Ontario N2L 3C5
Canada
519-884-0710 x.3707 (Phone)
519-884-0201 (Fax)

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