FAMILY BUSINESS SUCCESSION: THE CASE IN INDIA

Abstract

ABSTRACT
This study investigates the crucial determinants of success for Indian family businesses, considering aspects related to the family, the business itself, and the successors. The research focuses on family businesses, with 125 participants who are business owners, successors, or potential successors of family-owned SMEs. These respondents are from West and East India and represent enterprises that have been in operation for over 10 years. The analysis employs multiple regression, ANOVA, and descriptive statistics. The findings reveal that factors related to successors and the effectiveness of the succession process significantly influence the management succession in Indian family businesses. In contrast, family and business-related factors have a minor impact, as these are heavily influenced by the successor’s motivation to take over or be involved in the family business. The study provides valuable insights for family business owners on succession planning, communication, governance, decision-making, and financial transparency.