Strategy and Succession Planning in First Generation Family Businesses: an Exploratory Study

Abstract

Purpose The purpose of the dissertation research is study SME first generation family businesses, with regards to the adoption of succession planning and strategic planning. The data received for these two areas will then be analysed and it will be determined if there is any clear link between succession planning and strategic planning. Design/Methodology/Approach The data collection method used was semi-structured interviews to obtain qualitative information. Nine participants are involved within the study, with seven taking part in full interviews, with the remaining two participants providing information through short discussions. The sample used for this study was owners of first generation family businesses within the East Lothian area. Findings Within SME first generation family business the use of succession planning was a positive part of the further production of strategic planning. Results showed that the businesses who produced either a formal or informal succession plan also used strategic planning to plan for a positive and strong future scenario for the business. Research Limitations/Implications Through the results of this research it has been identified that the literature around family business varies from the results found in several different areas. So the research has identified that further research should be conducted to a similar structure as what has been carried out within this research, as to include a larger participation level, as to increase the generalizability of the results.