Moderating role of education on succession process in small family businesses in Pakistan

Abstract

Purpose

The purpose of this paper is to enhance the longevity and improve the succession process in small family businesses sustaining in Pakistan. Family businesses perform an active role in economic development of any country. Statistics shows, 30/13/3 business transfers into subsequent generation in the interfamily business (Ward, 2016).

Design/methodology/approach

Data are collected from 365 respondents who were either incumbents or successor in 135 small family businesses in Pakistan. Simple linear regression and process control analysis by Andrew Hayes are used for moderating variable analysis in SPSS20.

Findings

The results show that customer focus management, business strategies and governance board have a significant positive impact on the succession process of small family business in Pakistan. There is negative significant moderating impact of education on business strategies and customer focus management while there is no moderating impact of education over governance board and satisfaction with succession.

Research limitations/implications

This study will help the family business incumbents to focus deliberately on the factors that influence the succession process so that business could be transferred to the subsequent generation successfully.

Originality/value

The previous research does not show the effect of education at different levels and importance of customer focus management toward the succession process.

Citation

Ahmad, Z. and Yaseen, M.R. (2018), "Moderating role of education on succession process in small family businesses in Pakistan", Journal of Family Business Management, Vol. 8 No. 3, pp. 293-305. https://doi.org/10.1108/JFBM-12-2017-0041