Transgenerational Plan in Thai SME Family Business
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Abstract
Family businesses are representing 72% of the overall Thai economy (about 39 trillion Baht annually) but they have been struggling to have a stable trans-generation succession plan. This research was to study about transgenerational plan of Thai SEM family businesses and the attitude before passing on their businesses to the next generation. One hundred in-depth interviews with 100 Thai family businesses revealed that most of the business owners believed that they had a succession plan to prepare their successors. The first generation was the most passionate about their business and they wanted to pass-on their legacies to the next generation; however, the second generation wanted to pass on “stability” and focused on profitability as a criterion for passing on their business. Not all of the appointed successors were keen to continue their family legacy after experiencing the family businesses because of intimidation from previous generations and lacking of passions toward the business. Three misalignments were found among the three generations in family business that were caused by misplaced expectation on higher education of older generations, conflicting between passion and responsibility of the successors, resistance to changes of the older generation and lacking of persuading skill of the successors. A formal transitional program was recommended for the successors to implement new ideas and technologies while sustainably manage their family businesses and learning new skills to reduce resistance to changes.
Article Details
The manuscript submitted for publication must be the original version, submitted only to this particular journal with no prior acceptance for publication elsewhere in other academic journals. The manuscript must also not violate the copyright issue by means of plagiarism.
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