The suitability of internal versus external successors: relevant knowledge types in family business succession

Britta Boyd and Susanne Royer

International Journal of Management Practice, 2012, vol. 5, issue 4, 361-382

Abstract: Understanding knowledge transfer in family firm succession is important for the survival of family firms. Previous research has begun to explore the suitability of internal versus external successor in family firms with regard to relevant knowledge types. This paper builds on the contingency model of family business succession in order to understand when family successors are preferred because of their family-specific experiential knowledge. A case study analysis from the German-Danish border region explores how a family firm has used internal successors for the last 12 successions. We argue that in industries where tacit knowledge forms the basis for competitive advantage, the use of internal successors can help family firms excel after a transition of power has occurred. Theoretical and practical implications are discussed to enhance the long-term perspective for family businesses.

Keywords: competitive advantage; experiential knowledge; external succession; genograms; internal succession; knowledge types; RBV; resource-based view; tacit knowledge; transaction cost economics; internal successors; external successors; family business succession; knowledge transfer; family firms; contingency models; family successors; family-specific knowledge; Germany; Denmark; border regions; power transitions; HBK Dethleffsen; wood products; building materials; management practice; family businesses; competiveness; business performance. (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=50315 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmpra:v:5:y:2012:i:4:p:361-382

Access Statistics for this article

More articles in International Journal of Management Practice from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().