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Family Business Succession: Evolutionary Economics Approach

Author

Listed:
  • JUHA KANSIKAS

    (School of Business and Economics, P. O. Box 35 (MaE), 40014 Jyvaskyla University, Finland)

  • TUOMAS KUHMONEN

    (School of Business and Economics, P. O. Box 35 (MaE), 40014 Jyvaskyla University, Finland)

Abstract

This study analyses family business continuity from founder generation to the 2nd generation in terms of succession in the context of evolutionary economics. Two literature bases; family business succession and evolutionary thinking in organisational and economic change, are reviewed and combined to provide insights to understand the nature of family business succession. Operation of the key evolutionary forces — variation, selection, retention and struggle — in family business succession are illustrated. Regarding variation, there is a concern for understanding the importance of having enough diversity within the family firm, since this diversity of routines and competences comprises the pool of variation from which to select when the environment changes. With regards to selection, there is a concern for understanding the risk of selection bias easily rooted in the family firm culture: are some variations favoured in the selection of operating, investment and search routines because of family relations, emotions and values, including decisions on who will succeed and who will own the firm in the future. Elaboration and investigation of these concepts may help to identify special characteristics of the "family firm species" that are either beneficial or risky for the survival in the evolutionary struggle.

Suggested Citation

  • Juha Kansikas & Tuomas Kuhmonen, 2008. "Family Business Succession: Evolutionary Economics Approach," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 279-298.
    • Handle: RePEc:wsi:jecxxx:v:16:y:2008:i:03:n:s0218495808000156
    DOI: 10.1142/S0218495808000156
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    References listed on IDEAS

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    1. Geoffrey M. Hodgson, 1999. "Evolution and Institutions," Books, Edward Elgar Publishing, number 1481.
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    Cited by:

    1. Parimal Merchant & Arya Kumar & Debasis Mallik, 2018. "Factors Influencing Family Business Continuity in Indian Small and Medium Enterprises (SMEs)," Journal of Family and Economic Issues, Springer, vol. 39(2), pages 177-190, June.
    2. M. Dolores Botella-Carrubi & Tomas F. González-Cruz, 2019. "Context as a Provider of Key Resources for Succession: A Case Study of Sustainable Family Firms," Sustainability, MDPI, vol. 11(7), pages 1-18, March.
    3. Moritz Belling & Ulrich Pidun & Dodo zu Knyphausen-Aufseß, 2021. "Unbundling Strategic Change in Family Firms: the Influence of Familiness on the Strategic Change Process," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 381-411, December.
    4. Cheng-Wen Lee & Hsiao Chuan Chen & Choong Leng Peng & Shu Hui Chen, 2023. "Sustainability of Taiwanese SME Family Businesses in the Succession Decision-Making Agenda," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    5. Veland Ramadani & Léo-Paul Dana & Nora Sadiku-Dushi & Vanessa Ratten & Dianne H. B. Welsh, 2017. "Decision-Making Challenges of Women Entrepreneurship in Family Business Succession Process," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(04), pages 411-439, December.

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