WHAT FACTORS MAKE SUCCESSFUL FAMILY BUSINESS INHERITANCE FOR SMALL AND MEDIUM SIZE ELECTRICAL APPLIANCE MANUFACTURING INDUSTRY IN THAILAND?

Abstract

Thailand has many family businesses in many fields of industry. Most of family business in Thailand was found by Thai-Chinese family, which each of family will definitely let the heir to take over the business in the future after the retirement of founder. From previous study, it is shown that only 30% of family business can survive after to the second generation then 15% survive through the third generation. Therefore this study case will work on factors that can lead the successful succession for Thai family business. From previous study, it presented that the successful succession can measure with the profitability and satisfaction of stakeholder. All of participants in this study case present the successful in succession. The empirical evidence from this case study present that there are four factors that make prosperous succession. For instance, the effective communication of succession from the founder to employees in company, the readiness of succession, work experience inside family business of successor and the willingness to let go of business status of the predecessor. KEY WORDS: Family business / Succession / Success factor / SMEs Thailand