Year: 2013
Type: article
Abstract: Small business is the most common firm structure in the Canadian economy and accounts for the single largest share of economic activity. As the founders of these firms move to normal retirement age, they begin the transfer of the business to a family or non-family member. When the second generation assumes control of the firm, issues related to generational transfer of knowledge become important. Tacit knowledge has been identified as a key strategic resource \nand passing this knowledge from the founder to the successor is a key element in successful transition. This study explored the relationship of gender differences in tacit knowledge transfer in family business succession and the role of trust in the succession process. A qualitative \nmethodology based on the analysis of multiple case studies is used for this research. Eight cases of family business succession were investigated, with data collected from public sources and interviews with founders, successors (family members and non-family members), and key observers. The role of trust in family business succession is supported by the study's findings, but the findings expand on the existing literature by differentiating between relationship trust and business competence trust and defining the two types of trust as essential. This study supports prior knowledge that female successors are often viewed as having less leadership ability than male successors. In this study, however, females experienced more business socialisation than reported in prior studies.
Authors: Michael Henry, Ronel Erwee, Eric Kong
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1580809458