Entrepreneurship & Organization Management

The Effect of Succession on Family Business Innovation and Leadership: Case Analysis of Australia Smes

Abstract

Muhammad Usman Liaqat, Abbott J Haron* and Hassan Shakil Bhatti

This study investigates the effect of succession on family-owned businesses ' innovation and leadership. Multiple factors affect the socio-economic development of any nation, such as unemployment rates, literacy rates, and so on. Likewise, and family-owned businesses are among one of those factors. The whole study will be conducted in an Australian context because 70% of total businesses are family-owned businesses; therefore, can provide an in-depth dynamics of family firms. A family business is based on the succession, i.e., transfer of business ownership and control from one family member to another, mostly from one generation to another. The model regarding transfer of knowledge and successor's development in a family firm has been used. This model is based on the resource-based theory. As per this theory, knowledge is an essential resource for a firm, and it has two major categories, i.e., explicit knowledge and tacit knowledge. The tacit knowledge is more difficult to be transferred than explicit knowledge. It is assumed that family businesses have lesser problems than corporate. In current times, innovation for business success is the topmost priority, which has yet to be explored for family-owned businesses in Australia. Therefore, it is essential to explore the impact and consequences of business innovation on family-owned that small and medium businesses. This study aims to explore the succession of family-owned businesses and the effect on business innovation and leadership. This study plays a significant role in conventional family businesses that come across succession issues and have limited but efficient resource allocation within family businesses. The first objective of this study is to determine post intergenerational succession innovation. Secondly, the impact of succession on innovation. It also discovers the factors that impact innovation. A qualitative research approach will be followed by conducting interviews with open-ended questions to 24 respondents that include both predecessors and successors. The right to autonomy, secrecy, and privacy of all respondents will be protected under ethical consideration.