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How the Pygmalion Effect operates in intra-family succession: Shared expectations in family SMEs

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  • Martínez-Sanchis, Paula
  • Aragón-Amonarriz, Cristina
  • Iturrioz-Landart, Cristina

Abstract

The Pygmalion Effect is a case of the self-fulfilling prophecy, whereby the expectations of leaders influence the performance of followers (Avolio, Walumbwa, & Weber, 2009; Rosenthal, 1993). Intra-family succession processes, which are hardly ever formalised in small- and medium-sized family enterprises, provide a natural context to explore the perceptions that predecessors have about their successors and where the Pygmalion Effect is expected to occur. However, little is known about how a predecessor’s expectations can affect intra-family firm succession processes. Based on qualitative interviews with key family and non-family members, expectations were analysed in four in-depth case studies of intra-family SME succession processes. The findings show that the Pygmalion Effect operates over time and embraces incumbent, successor, and key stakeholders’ expectations, which support the new leader when facing succession-related challenges.

Suggested Citation

  • Martínez-Sanchis, Paula & Aragón-Amonarriz, Cristina & Iturrioz-Landart, Cristina, 2020. "How the Pygmalion Effect operates in intra-family succession: Shared expectations in family SMEs," European Management Journal, Elsevier, vol. 38(6), pages 914-926.
    • Handle: RePEc:eee:eurman:v:38:y:2020:i:6:p:914-926
    DOI: 10.1016/j.emj.2020.04.005
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