The Dilemma in Family Business: How Next-Gen Leaders Navigate Change in Traditional Systems.

Abstract

This study explores how next-generation leaders in Thai family-owned small and medium-sized enterprises (SMEs) navigate the challenges of leadership succession within traditional systems. Drawing on three qualitative case studies from a soy sauce company, an online retail business, and a furniture manufacturer, the research examines how cultural dynamics, identity struggles, and organizational frameworks shape the leadership transition process. Using Hofstede’s concept of power distance, Ketprapakorn and Kantabutra’s Culture Development Framework, and Deal and Kennedy’s corporate hero model, the study identifies three themes: (1) resistance and authority gaps in high power distance environments, (2) Building a culture that focuses on behavior is key to keeping our organizational values alive, and (3) identity transformation as successors adapt into leadership “heroes” within their firms. The study contributes to understanding leadership succession in Thai SMEs by highlighting the interplay between tradition and change, offering practical insights for business heirs, founders, and advisors seeking to ensure sustainable family legacies in dynamic market environments.