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No Heir apparent? Exploring the Worker Co-operative Model as a Solution to Family Business Continuity

Author

Listed:
  • Linda Murphy

    (Department of Management and Marketing, Cork University Business School, University College Cork (Ireland))

  • Olive McCarthy

    (Department of Food Business & Development, Centre for Co-operative Studies, Cork University Business School, University College Cork (Ireland))

  • Bridget Carroll

    (Department of Food Business & Development, Centre for Co-operative Studies, Cork University Business School, University College Cork (Ireland))

Abstract

Family businesses, with no apparent heir, face the risk of discontinuity. While a number of family businesses rely heavily on non-family employees, the role of non-family employees in the continuity of family businesses is under-researched. The workers’ co-operative model offers one way to address this gap as it represents a model whereby non-family employees gain a stake in ownership whilst the family remains involved. In practice, conversion to ensure continuity is actively promoted in a number of countries. In this paper, the authors explore the role of the workers’ co-operative model as one possible solution to succession difficulties facing family firms. Based on the reported experiences in a number of countries, we identify the motivations behind conversion, the barriers faced and the benefits accruing. We find that, in theory, the worker co-operative model merits the attention of family business scholars as a means of securing continuity and survival of family business. We explore the factors that appear to aid or hinder successful conversions in practice and we make recommendations to policy-makers surrounding the supports required to encourage and facilitate successful conversion.

Suggested Citation

  • Linda Murphy & Olive McCarthy & Bridget Carroll, 2017. "No Heir apparent? Exploring the Worker Co-operative Model as a Solution to Family Business Continuity," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 6(2), pages 20-39.
    • Handle: RePEc:trn:csnjrn:v:6:i:2:p:20-39
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    References listed on IDEAS

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    Cited by:

    1. Aldrich, Howard E. & Brumana, Mara & Campopiano, Giovanna & Minola, Tommaso, 2021. "Embedded but not asleep: Entrepreneurship and family business research in the 21st century," Journal of Family Business Strategy, Elsevier, vol. 12(1).

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    More about this item

    Keywords

    Workers co-operative model; Family businesses; Conversion; Continuity; Succession;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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