Strategic Planning in Family Business: A Powerful Developmental Tool for the Next Generation
Department
Management and Entrepreneurship
Document Type
Article
Publication Date
9-2008
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.
Journal Title
Family Business Review
Journal ISSN
0894-4865
Volume
21
Issue
3
First Page
239
Last Page
258
Digital Object Identifier (DOI)
10.1177/08944865080210030106