Sustainability of Taiwanese SME Family Businesses in the Succession Decision-Making Agenda

Cheng-Wen Lee (), Hsiao Chuan Chen, Choong Leng Peng and Shu Hui Chen
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Cheng-Wen Lee: Department of International Business, College of Business, Chung Yuan Christian University, Taoyuan City 320314, Taiwan
Hsiao Chuan Chen: Ph.D. Program in Business, College of Business, Chung Yuan Christian University, Taoyuan City 320314, Taiwan
Choong Leng Peng: Ph.D. Program in Business, College of Business, Chung Yuan Christian University, Taoyuan City 320314, Taiwan
Shu Hui Chen: Ph.D. Program in Business, College of Business, Chung Yuan Christian University, Taoyuan City 320314, Taiwan

Sustainability, 2023, vol. 15, issue 2, 1-21

Abstract: SME family businesses play a vital role in the world economy as a recognized sustainable contributor to economic growth. Aged owners of Taiwan’s family businesses have become the biggest problem; because of the dramatically changing technology and business environment, many family businesses are faced with an inheritance crisis. This study tries to identify what the priority of influential factors is for the leader’s decision-making of succession. Based on the stakeholder, upper echelons, stewardship, and agency theories, we summarized 27 crucial factors derived from four dimensions (individual, interpersonal, organizational, and the environmental) after reviewing the relevant literature. This study was based on multilevel research and a multidisciplinary perspective. After using the Delphi method and decision-making trial and evaluation laboratory (DEMATEL) method, we applied the importance–performance analysis (IPA) to determine the key factor priority. The results are important for strengthening family business theory and identifying the conditions that best promote the future growth and sustainability of family businesses.

Keywords: business succession; SME family business; Delphi method; DEMATEL (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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