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To Nurture or Groom? The Parent–Founder Succession Dilemma

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  • Jeffery S. McMullen
  • Benjamin J. Warnick

Abstract

Family business and human resource management scholars suggest that firms whose leaders experience affective commitment are more likely to achieve their goals. Building on self–determination theory, we propose a model in which parent–founders promote affective commitment in child–successors by supporting their psychological needs for competence, autonomy, and relatedness within the family business. We conclude by exploring the ethical implications of different parenting approaches in encouraging intrafamily succession.

Suggested Citation

  • Jeffery S. McMullen & Benjamin J. Warnick, 2015. "To Nurture or Groom? The Parent–Founder Succession Dilemma," Entrepreneurship Theory and Practice, , vol. 39(6), pages 1379-1412, November.
    • Handle: RePEc:sae:entthe:v:39:y:2015:i:6:p:1379-1412
    DOI: 10.1111/etap.12178
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    1. Arndt Werner & Sabrina Schell & Ljuba Haunschild, 2021. "How does a succession influence investment decisions, credit financing and business performance in small and medium-sized family firms?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 423-446, March.
    2. Sallay, Viola & Wieszt, Attila & Varga, Szabolcs & Martos, Tamás, 2024. "Balancing identity, construction, and rules: Family relationship negotiations during first-generation succession in family businesses," Journal of Business Research, Elsevier, vol. 174(C).
    3. Patrick Raymund James M. Garcia & Pramodita Sharma & Alfredo De Massis & Mike Wright & Louise Scholes, 2019. "Perceived Parental Behaviors and Next-Generation Engagement in Family Firms: A Social Cognitive Perspective," Entrepreneurship Theory and Practice, , vol. 43(2), pages 224-243, March.
    4. Kowalik, Elena, 2023. "Ethical Problems in Family Firms," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(2), pages 431-452.
    5. Schell, Sabrina & de Groote, Julia K. & Moog, Petra & Hack, Andreas, 2020. "Successor selection in family business—A signaling game," Journal of Family Business Strategy, Elsevier, vol. 11(3).
    6. Zheng, Xiaojia & Zhu, Bing & Yang, Ge, 2023. "The soft landing: Does intrafamily succession matter for corporate risk-taking?," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    7. Danielle Cooper & Whitney O. Peake, 2018. "Commentary: Family Member Well-Being in the Kinship Enterprise: A Self-Determination Perspective," Entrepreneurship Theory and Practice, , vol. 42(2), pages 340-345, March.
    8. Bloemen-Bekx, Mira & Van Gils, Anita & Lambrechts, Frank & Sharma, Pramodita, 2021. "Nurturing offspring’s affective commitment through informal family governance mechanisms," Journal of Family Business Strategy, Elsevier, vol. 12(2).

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