ISSN 2411-9571 (Print) ISSN 2411-4073 (online) European Journal of Economics and Business Studies January - April 2020 Volume 6, Issue 1 43 Intergenerational Management Succession: Specificities of the Portuguese Family Business Ana Paula Marques Department of Sociology at the University of Minho Interdisciplinary Centre of Social Sciences (CICS.NOVA/ UMinho Pole) Ana Isabel Couto School of Economics and Management of the University of Porto (FEP) Institute of Sociology of the University of Porto (IS-UP) Centre of Social and Organisational Studies of Porto Polytechnic (CEOS.PP/ISCAP/P.PORTO) Abstract Family firms are considered the world’s most predominant form of business organisation. Notwithstanding the fact that there is a lack of consensus with regards to their definition, on recognise that family firms are different from non-family businesses due to their specific relations at three levels, namely ownership, business and family. It would appear that the family influences, shapes and conditions both the firm and its continuity, mainly through the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50% of family businesses are not passed on to the second generation, and only 20% reach the third generation. Also, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER), the empirical findings have proved that the business succession planning has been identified as one of the most challenging steps in the life of the family firm, which demands for appropriate analysis. In fact, resistance to succession, relationship founder/ successor, planning of succession, type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life. In this article, we aim to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation. Based on an online survey (N 1148) and on in-depth interviews conducted to founder/ manager/ owner (N 23), we will seek to point out major challenges faced by the Portuguese family business, as far as this matter is concerned. Keywords: North of Portugal, family business, Professionalisation, Intergenerational Succession Introduction The family-owned business is an important agent in the creation of wealth, employment, and territorial and social cohesion in most countries. In the last decades, studies have frequently dealt with the definition and specific features of family business, in an attempt to clarify the differences between family and non-family firms. Literature related to this topic has stated its relevance in the academic arena (Litz, 2008; Sharma, 2004; Gallo, 1995; Habbershon & Williams, 1999; Davis & Tagiuri, 1989). However, notwithstanding the fact that there is a lack of consensus with regards to their definition, on recognise that family firms are different from non-family businesses due to their specific relations at three levels, namely ownership, business and family (Moores, 2009; Gallo, Tàpies & Cappuyns, 2004; Gersick, K., et al. 1997; Tagiuri & Davis, 1996). The family subsystem plays a key role in the firm’s cultur al configuration and goal-setting (Churchill & Hatten, 1987) however, enterprise subsystem must be ruled by meritocracy standards, professional governance and economic sustainability. Due to its complexity and the impact that intergenerational succession has on the organisational structure, succession in companies requires full involvement of all family members. A deliberate and systematic transference in the preparation of succession implies to assure, on the one hand, the continuity of the key positions and, on the other hand, the retention of human capital. The successor tends to present several types of dilemmas that he/she has to solve on a