Continuity and Change in Family Firms: The Role of Intrapreneurship, Family Dynamics, Emotional Attachment, and Stewardship
Combating the challenges of succession in family firms
Family firms are the backbone of many economies, yet ensuring their continuity across generations remains a major challenge, Rosalie Saemann’s research shows. Many family firms struggle to balance preserving the firm's legacy while adapting to changing circumstances.
In her dissertation Saemann, who lectures at Aalen University, investigates the mechanisms that shape continuity and change during family firm succession. Specifically, she examines how intrapreneurship, family dynamics, emotional attachment and the stewardship of non-family employees influence succession processes and outcomes.
“Existing research has primarily focused on succession outcomes, but less is known about the mechanisms that shape the succession process. As succession failure rates remain high and many family firms face generational transitions, these new insights can help preserve businesses, jobs, and regional economies.”
‘Successful succession is about knowing what to preserve and what to change’
Saemann shows that successful family business succession depends on the interplay between people, relationships, communication and organizational practices. “Passing a business from one generation to the next requires more than selecting a successor or transferring ownership. It also depends on encouraging innovation, building trust and cooperation within the family, managing emotional ties, and recognizing the valuable role of non-family employees.”
The research demonstrates that continuity and change are not opposing forces. “Family firms are most likely to succeed when they preserve the values and strengths that define the business while remaining open to new ideas and ways of working.”
Recommendations
The thesis provides practical guidance for family business owners, successors, non-family employees, advisors and policymakers. It shows for instance that succession should be managed as a long-term process rather than a one-time transfer of ownership and leadership. Family firms should prepare both successors and incumbent owners, helping them gradually transfer responsibility and redefine their role while supporting the next generation in shaping the firm's future.
More information on the thesis to follow.