The way toward a new entrepreneurial balance in business succession processes

Purpose: The purpose of this paper is to explore the under-researched family-external business succession process. It makes use of entrepreneurship theory in order to conceptualize this temporal process. This allows for an operationalization of entrepreneurial functions and tracking them during the two main phases of such processes. This study provides a starting point for further endeavors into researching family-external succession processes. Design/methodology/approach: This paper is based on an explorative, quasi-longitudinal, qualitative and multiple case-study approach. It became possible to create trust with stakeholders in three family firms and to conduct face-to-face interviews with a total of 12 interviewees, generating over 300 transcript pages. The case interviews were validated through two expert interviews. A priori research propositions were tested and modified, if deemed necessary. Findings: Entrepreneurial functions during the two main phases of the process seem to be carried out and aligned depending on several influencing factors: delegation of responsibilities from owner-managers to qualified employees; incumbent owner-managers being heavily involved in the succession’s facilitation and neglecting some entrepreneurial functions; and as a result new owner-managers being forced to prioritize certain functions in the second phase. Originality/value: This paper benefits from a rather unique access to three family firms undergoing succession in the DACH-region. Therefore, it became possible to study the family-external succession process by including various stakeholders involved. Such an inclusion of perspectives has been suggested by family business scholars for a long time.