Willingness to Inherit Thai SME Family Business of Generation Z: Factors Influencing the Transgenerational Intent
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Abstract
This study investigated factors shaping Generation Z (Gen Z) heirs' attitudes toward inheriting family businesses (FBs), with an emphasis on the drivers, barriers, and dynamics influencing succession decisions. The samples 149 FBs with multi-generation management and Gen Z successors were selected from 450 Bangkok University School of Entrepreneurship and Management (BUSEM) students (class of 2023) with FB background and volunteered to participate in the study. The data were collected through one-on-one interview covering 2 aspects: 1) the FB information and business situation and 2) the Gen Z successors’ intention to inherit the business, entrepreneurial orientation (EO), and their perspective toward the business situation and management. The former was obtained from interviewing the current management of the FBs and the latter was obtained from interviewing the prospective Gen Z heirs. Two important factors influencing the Gen Z heirs’ intention to inherit their FBs were 1) Generation gap between heirs and current managements and 2) Clear communication about succession plan. This study found significant associations between a number of Gen Z heirs who were willing to inherit their FBs. Gen Z heirs were more likely to inherit FBs managed by parents, particularly mothers, than those managed by siblings or older generations. Moreover, the Three-circle model (Business, Family and Ownership) was applied, revealing the significant influence of family ties and ownership communication on transgenerational intent (TI), while business characteristics like industry and life-cycle stage had little impact. Notably, marketing crises did not deter Gen Z heirs from succession, but human resource and cultural crises did, marking a new finding in Thai SME FB studies.
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