Factors influencing family business succession

Classifies controllable or internal factors influencing family business transitions into three groups: preparation level of the heirs, family relationships, and planning and control activities. To assess the impact of each set of factors on the ease of generational transitions and subsequent family business performance, a cross‐sectional survey was directed at owner/ managers of second‐ and third‐generation family businesses. Suggests that, in successful transitions, heirs are reasonably well‐prepared, family relationships tend to be positive, and succession planning and related control activities are relatively informal. Of these three, trust and communication in family relationships appears to have the most significant impact on transitions. Draws managerial implications and makes suggestions for ongoing research.