Capable and Committed Children: A Successor-Centric Theory of Family Business Succession

In contrast to dominant models and theories of family business succession that take a founder-centric approach, I used a case study approach to propose a successor-centric theory of family business succession. My theory explains the successful continuity of family firms through successors who are capable and committed to the continued profitability of their family firms. Contrary to the established literature, I identify how successors are the most critical actors for passing a family business from one generation to the next. My theory indicates that the dimensions of successor capability and commitment mediate the founder’s effect on succession and moderate the founder’s likelihood of planning the succession process; however, the responsibility of continuing the family business ultimately falls on the successor.