He suddenly died : Unplanned succession in family firms

Abstract

<p>Much of the family business literature focuses on successions which are planned and prepared in advance, in collaboration with the predecessor and the next generation to take over. Very often unexpected things happen, such as illness or sudden death, and the family business needs to be transferred to the next generation without planning or the presence of the predecessor. The authors have conducted case studies of three family businesses in Finland that experienced premature and unplanned succession due to the death of the owner, CEO, father, and husband. They explore how families and family businesses cope with such a situation, which is seldom studied due to its delicate nature. Their study contributes by bringing new insights about decision making during premature and unplanned succession and argues that even painful emotions such as grief can be a resource in the interconnectedness between family and the business, particularly when coinciding with pragmatic decisions. The study also suggests that daughters who are not considered as potential successors by their fathers may end up taking over the family business due to a lack of other options.<br /></p>