Intra-family dynamics and
succession planning in family
businesses in South Africa:
the daughter as a
potential successor
Boris Urban and Ruth Palesa Nonkwelo
University of the Witwatersrand, Johannesburg, South Africa
Abstract
Purpose – Literature considers the succession process to be successful when both the continuity of the
business and harmony within the family are preserved. This study empirically investigates intra-family
dynamics with regard to daughters as potential successors in family businesses.
Design/methodology/approach – The study takes place in South Africa where family businesses represent
a significant amount of all listed businesses on the Johannesburg Stock Exchange. A structured survey
instrument is used to collect primary data from family businesses in South Africa. The study hypotheses are
statistically tested using regression analyses.
Findings – Results highlight the importance of the business context (BC), intra-family cohesion (IFC), intra-
family adaptability (IFA) as well as the parent-daughter relationship (PDR) in successful daughter succession
planning (SP). An important insight which emerges from the findings is the extent to which a harmonious
business environment is conducive in accommodating the daughter as a successor to the business.
Practical implications – Family business owners need to be aware of the often conflicting pressures that
daughters face as potential successors. Evidence-based and fit for purpose to the South African family BC
processes and directives must be formulated that guide the implementation of SP. The provision of training
specifically focused on gender bias issues and women empowerment programmes in family business is
recommended.
Originality/value – Investigating theoretical and practical problems related to daughters in SP in South
Africa is important considering that firms in African countries in general tend to be poorly managed.
Keywords Succession, Parent-daughter relationship, Intra-family dynamics, Cohesiveness, Adaptiveness,
South Africa
Paper type Research paper
Introduction
Family businesses are of great economic importance in many countries, and subsequently the
significance of successful transition in the family business, from one generation to the next, is
well recognised and documented in several studies (Benavides-Velasco et al., 2013; Calabr o
et al., 2018; Daspit et al., 2017; Farrington et al., 2012; Hjorth, 2016; Le Breton-Miller et al., 2004;
Soto Maciel et al., 2015). Several studies confirm that the transfer of a family firm is a highly
complex process delineated by different phases (pre-succession, the event and post-
succession) which are shaped by many factors such as the size and sector of the business, as
well as family dynamics such as the degree of harmony, number of siblings and the age of
family members (Le Breton-Miller et al., 2004; Venter and Urban, 2015; Xi et al., 2015). In
general, the family business literature considers the succession process to be successful when
the continuity of the business is safeguarded and when harmony within the family is
preserved (Calabr o et al., 2018; Frank et al., 2017; Gilding et al., 2015; Sharma et al., 2012).
However and despite succession being a core research topic in family business research,
many family businesses face succession planning (SP) challenges as they rarely survive after
the first generation (Glover and Reay, 2015). Moreover, most research in the family business
Intra-family
dynamics and
succession
planning
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Received 27 August 2020
Revised 28 September 2020
Accepted 18 October 2020
Journal of Family Business
Management
© Emerald Publishing Limited
2043-6238
DOI 10.1108/JFBM-08-2020-0084