Click here to download

Business succession and Intellectual Capital Management in family firms
Author/s: Giovanni Bronzetti, Romilda Mazzotta 
Year:  2015 Issue: Language: English 
Pages:  28 Pg. 45-72 FullText PDF:  176 KB
DOI:  10.3280/MACO2015-001003
(DOI is like a bar code for intellectual property: to have more infomation:  clicca qui   and here 

Family businesses are institutions in which two seemingly disparate social units (i.e., families and businesses) are highly integrated. This connection extends to succession across generations and while natural, this can be a difficult process. The founder, thanks to his long stay in the family business, has a substantial amount of tacit knowledge related to the firm which can often determine business success. In the succession process it is important to diffuse and manage overall knowledge, or intellectual capital, to the successor. This study attempts to contribute to the literature casting some light on the business succession in a family firm informed by an intellectual capital perspective. Starting from these theoretical principles, through a case study analysis approach, the research investigates how human and relational resources are managed in the business succession process and how the process is communicated to the external environment and therefore how small family firms can maintain and increase their competitive advantage thus reducing the risk of failure during the succession process.
Keywords: Family business, intellectual capital, business succession
Jel Code: M10, M12, M13, M40

  1. Burkart M., Panunzi F., Shleifer A. (2003), Family firms, Journal of Finance, 58, 5, pp. 2167-2201., DOI: 10.1111/1540-6261.00601
  2. Cabrera-Suárez K., De Saá Pérez P. (1996), La empresa familiar desde la perspectiva de la teoría de recursos y capacidades. La Empresa en una Economía Globalizada: Retos y Cambios, Proceedings of the Xth National Congress of AEDEM. Granada, Spain.
  3. Cabrera-Suárez K., De Saa-Pérez P., García-Almeida D. (2001), The succession process from a resource and knowledge-based view of the family firm, Family Business Review, 14, 1, pp. 37–46., DOI: 10.1111/j.1741-6248.2001.00037.x
  4. Cardoni, A. (2012), Business planning and management accounting in strategic networks: theoretical development and empirical evidence from enterprises’ network "agreement", Management Control, suppl. 3, pp.91-116., DOI: 10.3280/MACO2013-SU3005
  5. Castanias R., Helfat C. (1992), Managerial and windfall rents in the market for corporate control, Journal of Economic Behavior and Organization, 18, 2, pp. 153-184., DOI: 10.1016/0167-2681(92)90025-7
  6. Chiucchi M.S. (2010), Il capitale intellettuale in azione: una analisi empirica, in Marchi L., Marasca S., a cura di, Le risorse immateriali nell’economia delle aziende, vol. 2, Profili di misurazione e di comunicazione, Bologna, il Mulino.
  7. Chiucchi M.S., Giuliani M., Marasca S. (2014), The design, implementation and use of intellectual capital measurements: a case study, Management Control, 2, pp. 143-168., DOI: 10.3280/MACO2014-002007
  8. Chrisman J.J., Chua J.H., Litz R.A. (2003), A unified perspective of family firm performance: An extension and integration, Journal of Business Venturing, 18, 4, pp. 467-472., DOI: 10.1016/S0883-9026(03)00055-7
  9. Chrisman J. J., Chua J.H., Kellermanns F., ChangE. (2007), Are family managers agents or stewards? An exploratory study in privately held family firms, Journal of Business Research, 60, 10, pp. 1030-1038., DOI: 10.1016/j.jbusres.2006.12.011
  10. Claver-Cortés E., Molina-Manchon H., Zaragoza-Saez P. (2013), Intellectual capital model for family firms, Knowledge Management Research & Practice, 11, 2, pp. 184-195., DOI: 10.1057/kmrp.2013.14
  11. Collins J.C., Porras J.I. (1994), Built to last: Successful habits of visionary companies, New York, HarperCollins Publishers.
  12. Corbetta G. (2008), Le imprese familiari: un ambito di lavoro promettente per l’economia aziendale, in Devecchi C., Fraquelli G., a cura di, Dinamiche di sviluppo e internazionalizzazione del family business, Bologna, il Mulino.
  13. Corbetta G., Minichilli A., Quarato F. (2011), Osservatorio AUB sulle aziende familiari, Milano, Università Bocconi – AIDAF, terza edizione.
  14. Davis J.A., Tagiuri R. (1989), The influence of life-stage on father-son work relationships in family companies, Family Business Review, 2, 1, pp. 47-74., DOI: 10.1111/j.1741-6248.1989.00047.x
  15. De Massis A., Chua J.H., Chrisman J.J. (2008), Factors preventing intra-family succession, Family Business Review, 21, pp. 183-199., DOI: 10.1111/j.1741-6248.2008.00118.x
  16. Dyer J.G. (1989), Integrating professional management into a family-owned business, Family Business Review, 2, 3, pp. 221-235., DOI: 10.1111/j.1741-6248.1989.00221.x
  17. Edvinsson L., Malone M.S. (1997), Intellectual Capital, London, Piatkus.
  18. Fondazione Nord Est (2007), Una alleanza per la continuità d’impresa, Vicenza, Unicredit.
  19. Foss N.J., Knudsen T. (2003), The resource-based tangle: towards a sustainable explanation of competitive advantage, Managerial and Decision Economics, 24, 4, pp. 291-307., DOI: 10.1002/mde.1122
  20. Fox M., Nilakant V., Hamilton R. (1996), Managing succession in family-owned business, International Small Business Journal, 15, 1, pp. 15-25., DOI: 10.1177/0266242696151001
  21. Priem R. , ButlerJ. (2001), Is there sourced-based view a useful perspective for strategic management research?, Academy of Management Review ,26, 1,pp. 22–40., DOI: 10.5465/AMR.2001.4011928
  22. García-Álvarez E., Lóopez-Sintas J., Saldaña- Gonzalvo P. (2002), Socialization patterns of successors in first to second-generation family businesses, Family Business Review, 15, 3, pp. 189-203., DOI: 10.1111/j.1741-6248.2002.00189.x
  23. Ghauri P., Grønhaug K. (2002), Research Methods in Business Studies: A Practical Guide, London, Prentice Hall.
  24. Grant R.M. (1991), The resource-based theory of competitive advantage: implications for strategy formulation, California Management Review, 33, 3, pp. 114-135., DOI: 10.2307/41166664
  25. Habbershon T.G., Williams M.L. (1999), A resource-based framework for assessing the strategic advantages of family firms, Family Business Review, 12, pp. 1-25., DOI: 10.1111/j.1741-6248.1999.00001.x
  26. Handler W.C. (1990), Succession in family firms: a mutual role adjustment between entrepreneur and next-generation family members, Entrepreneurship: Theory and Practice, 15, 1, pp. 37-51., DOI: 10.1111/j.1741-6248.1994.00133.x
  27. Handler W.C. (1989), Managing the family firm succession process: The next-generation family member‘s experience, Michigan, UMI Dissertation Services.
  28. Handler W.C. (1994), Succession in family businesses: A review of the research, Family Business Review, 7, 2, pp. 133-157., DOI: 10.1111/j.1741-6248.1994.00133.x
  29. Itami H., Roehl T. (1987), Mobilizing invisible assets, Cambridge, Harvard University Press.
  30. Kelly L.M., Athanassiou N., Crittenden W.F. (2000), Founder centrality and strategic behavior in family-owned firm, Entrepreneurship Theory and Practice, Winter, pp. 27-42. Kets de Vries M. (1996), Family business: Human dilemmas in the family firm, London, International Thomson Business Press.
  31. Lansberg I.S. (1988), The succession conspiracy: Resistance to succession planning in first generation family firms, Family Business Review, 1, 2, pp. 119-143., DOI: 10.1111/j.1741-6248.1988.00119.x
  32. Le Breton-Miller I., Miller D., Steier L. (2004), Towards an integrative model of effective FOB succession, Entrepreneurship Theory and Practice, 28, 4, pp. 305-328., DOI: 10.1111/j.1540-6520.2004.00047.x
  33. Lee D.S., Lim G.H., Lim W.S. (2003), Family business succession: Appropriation risk and choice of successor, Academy of Management Review, 28, 4, pp. 657-666., DOI: 10.5465/AMR.2003.10899446
  34. Lundberg C.C. (1994), Unraveling Communications Among Family Members, Family Business Review, 7, 1, pp. 29-37., DOI: 10.1111/j.1741-6248.1994.00029.x
  35. Marchi L. (2011), L’evoluzione del controllo di gestione nella prospettiva informativa e gestionale esterna, Management Control, 3, pp. 5-16., DOI: 10.3280/MACO2011-003001
  36. Matthews C., Moore T. W., Fialko A.S. (1999), Succession in family firm: a cognitive categorization perspective, Family Business Review, 12, 2, pp. 159-169., DOI: 10.1111/j.1741-6248.1999.00159.x
  37. Mazzola P., Marchisio G., Astrachan J. (2008), Strategic planning in family business: a powerful developmental tool for the next generation, Family Business Review, 21, 3, pp. 239-258., DOI: 10.1111/j.1741-6248.2008.00126.x
  38. McGrath J.E., Argote L. (2000), Group Processes in Organizational Contexts, in Hogg M., Tindale R.S. editors, Blackwell's Handbook of Social Psychology, vol. 3, Group Processes, London, Blackwell Publishers.
  39. Memili E., Chrisman J.J., Chua J.H., Chang, E.P.C., Kellermanns F.W. (2011), The determinants of family firms’ subcontracting: a transaction cost perspective, Journal of Family Business Strategy, 2, 1, pp. 26-33., DOI: 10.1016/j.jfbs.2011.01.003
  40. Miller D., Steier L., Le Breton-Miller I. (2003), Lost in time: Intergenerational succession, change and failure in family business, Journal of Business Venturing, 18, 4, pp. 513-551., DOI: 10.1016/S0883-9026(03)00058-2
  41. Milton L.P. (2008), Unleashing the relationship power of family firms: identity confirmation as a catalyst for performance, Entrepreneurship Theory and Practice, 32, 6, pp. 1063-1081., DOI: 10.1111/j.1540-6520.2008.00273.x
  42. Mouritsen J. (2004), Measuring and intervening: how do we theorise intellectual capital management?, Journal of Intellectual Capital, 5, 2, pp. 257-267., DOI: 10.1108/14691930410533687
  43. Neubauer F., Lank A.G. (1998), The Family Business: Its Governance for Sustainability, London, Mcmillan Press.
  44. Nooteboom B. (1993), Research note: an analysis of specificity in transaction cost, Organization Studies, 14, 3, pp. 443-451., DOI: 10.1177/017084069301400306
  45. Pardo-del-Val M. (2008), Succession in family firms from a multistage perspective, International Entrepreneurship and Management Journal, 5, 2, pp. 165-179., DOI: 10.1007/s1136-008-0092-1
  46. Perricone P.J., Earle J.R., Taplin I.M. (2001), Patterns of succession and continuity in family-owned business: Study of an ethnic community, Family Business Review, 14, 2, pp. 105-121., DOI: 10.1111/j.1741-6248.2001.00105.x
  47. Petty R., Guthrie J. (2000), Intellectual capital literature review, Journal of intellectual Capital, 1, 2, pp. 155-176., DOI: 10.1108/14691930010348731
  48. Rastogi P.N. (2003), Rethinking the process of value creation and sustained enterprise growth, Journal of Intellectual Capital, 4, 2, pp. 227-248., DOI: 10.1108/14691930310472848
  49. Reed K.K., Lubatkin M., Srinivasun N. (2006), Proposing and testing an intellectual capitalbased view of the firm, Journal of Management Studies, 43, 4, pp. 867-893., DOI: 10.1111/j.1467-6486.2006.00614.x
  50. Roos G., Pike S., Fernstro M.L. (2005), Managing intellectual capital in practice, Oxford, Butterworth-Heinemann.
  51. Roos J., Roos G., Dragonetti N., Edvisson L. (1997), Intellectual capital: navigating in the new business landscape, London, MacMillan Business.
  52. Rue L.W., Ibrahim N.A. (1996), The status of planning in smaller family-owned business, Family Business Review, 9, 1, pp. 29-43., DOI: 10.1111/j.1741-6248.1996.00029.x
  53. Rullani E. (2004), La fabbrica dell’immateriale. Produrre valore con la conoscenza, Roma, Carocci.
  54. Russ M., Catasús B. (2014), Intellectual capital and management control: human capital valuation and other challenges, Management Control, 2, pp. 5-21., DOI: 10.3280/MACO2014-002001
  55. Scapens R.W. (2008), Doing case study research, in Humphrey C., Lee B. editors, The real life guide to accounting research: a behind-the-scenes view of using qualitative research methods, Oxford, Elsevier ltd.
  56. Schein E.H. (1983), The role of the founder in creating organizational culture, Organizational Dynamics, 12, 1, pp. 13-28., DOI: 10.1016/0090-2616(83)90023-2
  57. Schillaci C.E. (2008), Famiglia, impresa e paradosso coevolutivo. Una diversa prospettiva d’indagine sul family business, in Devecchi C., Fraquelli G., a cura di, Dinamiche di sviluppo e internazionalizzazione del family business, Bologna, il Mulino.
  58. Sharma P., Chrisman J.J., Chua J.H. (2003), Predictors of satisfaction with the succession process in family firms, Journal of Business Venturing, 18, 5, pp. 667-687., DOI: 10.1016/S0883-9026(03)00015-6
  59. Sharma P. (2004), An overview of the field of family business studies: current status and directions for the future, Family Business Review, 17, 1, pp. 1-36., DOI: 10.1111/j.1741-6248.2004.00001.x
  60. Sirmon D.G., Hitt M.A. (2003), Managing resources: linking unique resources: management, and wealth creation in family firms, Entrepreneurship Theory and Practice, 27, 4, pp. 339-358., DOI: 10.1111/1540-8520.t01-1-00013
  61. Sorenson R., Bierman L. (2009), Family capital, family business, and free enterprise, Family Business Review, 22, 3, pp. 193-195., DOI: 10.1177/0894486509341178
  62. Steier L. (2001), Next-generation entrepreneurs and succession: An exploratory study of modes and means of managing social capital, Family Business Review, 14, 3, pp. 259-276., DOI: 10.1111/j.1741-6248.2001.00259.x
  63. Stewart T.A. (1997), Intellectual capital: the new wealth of organizations, New York, Currency/ Doubleday.
  64. Subramaniam M., Youndt M.A. (2005), The influence of intellectual capital on the types of innovative capabilities, Academy of Management Journal, 48, 3, pp. 450-463., DOI: 10.5465/AMJ.2005.17407911
  65. Sudarsanam S., Sorwar G., Marr B. (2006), Real options and the impact of intellectual capital on corporate value, Journal of Intellectual Capital, 7, 3, pp. 291-308., DOI: 10.1108/14691930610681410.
  66. Sveiby K. (1997), The new organization alwealth.managing and measuring knowledge based assets,San Francisco, Berret-Koehler Publishers Inc
  67. Szulansky G. (2000), The process of knowledge transfer: A diachronic analysis of stickiness, Organizational Behavior and Human Decision Processes, 82, 1, pp. 9-27., DOI: 10.1006/obhd.2000.2884
  68. Tagiuri R., Davis J. (1996), Bivalent attributes of the family firm, Family Business Review, 9, 2, pp. 199-208., DOI: 10.1111/j.1741-6248.1996.00199.x.
  69. Venter E., Boshoff C., Maas G. (2005), The influence of successor-related factors on the succession process in small and medium-sized family businesses, Family Business Review, 18, 4, pp. 283-303., DOI: 10.1111/j.1741-6248.2005.00049.x
  70. Ward J.L. (1987), Keeping the family business healthy, San Francisco, Jossey-Bass.
  71. Ward J.L., Aronoff C.E. (1994), Preparing successors to be leaders, Nation’s Business, 82, pp. 54-55.
  72. Wong K.Y., Aspinwall E. (2004), Knowledge management implementation frameworks: a review, Knowledge and process management, 11, 2, pp. 93-104., DOI: 10.1002/kpm.193
  73. Yin R.K. (2003), Case study research design and methods, Thousand Oaks, Sage Publications.
  74. Yin R.K. (2012), Applications of case study research (3rd ed), Thousand Oaks, Sage Publications.
  75. Anderson R., Mansi S.A., Reeb D. (2003), Founding family ownership and the agency cost of debt, Journal of Financial Economics, 68, pp. 263-285., DOI: 10.1086/377115
  76. Astrachan J.H., Kolenko T.A. (1994), A neglected factor explaining family business success: human resource practices, Family Business Review, 7, 3, pp. 251-262., DOI: 10.1111/j.1741-6248.1994.00251.x
  77. Astrachan J.H., Allen I.E., Spinelli S. (2002), Mass mutual, Raymond Institute American family business survey, Springfield, Mass Mutual Financial Group.
  78. Berry A.J., Otley D.T. (2008), Case-based research in accounting, in Humphrey C., Lee B. editors, The real life guide to accounting research: a behind-the-scenes view of using qualitative research methods, Oxford, Elsevier ltd.
  79. Bracci E., Vagnoni E. (2006), Managing intellectual capital in small family business succession: an integrated framework, Working Paper presented to the 1st EIASM Workshop on Visualising, Measuring, and Managing Intangibles and Intellectual Capital, Ferrara, Italy.
  80. Bracci E., Vagnoni E. (2011), Understanding Small Family Business Succession in a Knowledge Management Perspective, The IUP Journal of Knowledge Management, IX, 1, pp. 1-30., DOI: 10.1080/08109028.2011.565693
  81. Bromley D.B. (1986), The case-study method in psychology and related disciplines, Chichester, John Wiley & Sons.
  82. Brooking A. (1996), Intellectual Capital: Core Asset for the Third Millennium Enterprise, London, International Thomson Business Press.

Giovanni Bronzetti, Romilda Mazzotta, in "MANAGEMENT CONTROL" 1/2015, pp. 45-72, DOI:10.3280/MACO2015-001003


FrancoAngeli is a member of Publishers International Linking Association a not for profit orgasnization wich runs the CrossRef service, enabing links to and from online scholarly content