Transgenerational problems of Thai SME family business in tourism and hospitality industry.

Abstract

This thematic paper is conducted to explore how does Thai SMEs family business in tourism and hospitality industry deal with transgenerational problems. Theories related to family-owned business are analyzed to discover negative and positive factors, which influent effectiveness of business transitional phase from predecessors to descendants. A Three Circle Model, Overlapping System, Three-axis Life Cycle Model, and Family Business Dilemma are the framework that used for examining constraints and problems. Industry-Specific Modifier framework and The Parallel Planning Process (PPP) are determined and given potential solutions for transgenerational family business. Qualitative method is utilized for the primary data collection. Respondents are three family-owned hotel and resort in Thailand including antecedents and heirs. They involved in an in-depth interview with two different sets of open-ended questions. The results of this study represented that conflict of family relations always resolved within short period of time. However, an effective succession plan requires longer duration and has more aspects to be concerned; for instance, guidance for parents to select the right leader for the second generation. Moreover, coaching style parenting is suggested for the forerunners to prepare their successors regarding to industry-specific competencies.