Successful transition of family business succession planning.

Abstract

SMEs and family business organization are the major contributors to Thai economy growth. From recent study, it is shown that only 30% of owner-managed businesses are passed on to the first generation, and that only 10% make it to the third. This case study is aimed to identify the elements that contribute to the success of the business transition to the next generation and to ensure Thai economy sustainability. The purposive sampling technique was employed in order to gain the sufficient information for the research topic from a group of people who have background/expertise relates to the objective of the study. Ten participants from the management level of an SMEs organization in succession transition implementd by informal and formal succession planning. The results of this study are based on the research frame work that comprises of the relationship of each stake holders within an organization and steps in succession planning. It is founded that elements that can contributes to success transition are predecessor’s past work experience outside an organization which positive affects smoothness of the transition. For example, a manegerial and stake holder’s relationship management skills were found to greatly influence the effectiveness of relationship among each family/business members and improved planning and control activities