African Journal of Business Management Vol. 6(49), pp. 11865-11879, 12 December, 2012 Available online at http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM12.1411 ISSN 1993-8233 ©2012 Academic Journals Full Length Research Paper A measuring instrument to predict family succession commitment to family business Magda LM Hewitt, Leon Janse van Rensburg and Wilfred I. Ukpere* Faculty of Management, University of Johannesburg, South Africa. Accepted 16 November, 2012 Family businesses (FBs) are the most prevalent form of business throughout the world, and are highly pertinent in developing economies. The issue of succession in FBs has received some attention by researchers. Given that 15% of family businesses survives into the third generation, it remains an area of concern. In South Africa 80% of businesses in the formal sector are family owned. This article discusses the current level of knowledge in succession and commitment theories within a family business context. The different theoretical approaches to commitment include the behavioural, attitudinal and motivational theories. This article suggests that the motivational commitment approach must be used to predict successor commitment in the family business. A model is suggested to verify family succession commitment relationships and a measuring instrument has been developed based on the model to verify successor commitment. Key words: Family business, succession, commitment, motivational approach, measuring instrument, behavioural, attitudinal. Introduction More than half the companies listed on the Johannesburg Stock Exchange (JSE) Limited in South Africa are family businesses. Estimations show 80 percent of the formal sector businesses are family owned, comprising almost 1.2 million businesses of which 330 000 are companies or close corporations and 870 000 sole proprietorships (Kruger, 2009). Approximately 30% of family businesses (FB) survives into the next generation, and 15% survive into the third generation (Astrachan and Allen, 2003). Supporting statistics revealed that three out of ten FB makes it through the second generation and only one out of ten makes it through the third generation. The biggest threat to FB is the lack of proper succession planning (Lambrecht, 2005). The outcome of these statistics results in negative impacts on the economy and the growth of the economy (Chrisman, 2003). The South African Government aims for an economic growth of 4.5 to 6% in the medium to long term (The Presidency, 2006). Currently it holds and average of 4% growth (Info SA, 2009). Family-owned *Corresponding author. E-mail: wilfredukpere.ajbm@gmail.com. business should, therefore, be considered as significant to the well-being of South Africa and global economies. They have a unique potential to further economic growth and social stability within their respective countries (Cavusgil, et al., 2004). In this widely under-nourished field of study, there is a growing need to investigate the specific universal forces that lead to the superior performance and resilience of current FB (Kruger, 2009). Problem statement Only a meagre 30% of family businesses (FBs) continue into the next generation, and just about 15% of them progresses into the third generation. Supporting statistics revealed that three out of ten FBs makes it through the second generation and only one out of ten makes it through the third generation. The major challenge to FBs is the lack of proper succession planning. There is indeed a need to interrogate whether contextual factors of familial cultural socialisation is related to resulting commitment behaviours (RCBs) of the employed family member in the family business, and whether individual characteristics moderate this relationship.