Factors Influencing the Succession Intentions of Generation Z in Family Businesses: An Analysis of Person-Related, Family-Internal and Family-External Factors

Abstract

The aim of this master's thesis is to analyze the succession in family businesses, with a focus on Generation Z. Family businesses account for over 85% of all companies in the DACH region and are therefore a central component of the economy. At the same time, there is a significant decline in the intention of potential Generation Z successors to take over, which jeopardizes the long-term nature of this particular form of company. The aim of this thesis is to analyze family-internal, family-external and personal factors that influence the family business takeover in Generation Z by means of a theoretical justification and a conducted qualitative study. To this end, a systematic literature analysis was first carried out in order to reflect the current state of research. Subsequently, 11 guideline interviews were conducted with successors in various family businesses and analyzed according to Mayring's summarising content analysis. The three-circle model according to Tagiuri and Davis (1996) and the integrative model of business succession according to Le Breton-Miller/Miller/Steier (2004) were used to gain a better understanding of the results and to facilitate interpretation. The results of the empirical study show that the intention to take over is characterized by an interplay of the three main factors. On a personal level, the desire for self-realization, the relevant training and intrinsic motivations are the main drivers, while a lack of identification with the company and a lack of confidence in one's own leadership skills have an inhibiting effect. Within the family, other family members play a particularly important role. Supportive behavior and, above all, parental encouragement have a positive effect on the intention to take over, whereas controlling behavior or an unclear distribution of roles have an inhibiting effect. Outside the family, the sector and the labor market in which the family business operates have a major influence. If the future outlook is good, the takeover intention increases. The economic stability of the family business and social expectations also play a role in the development of a takeover intention. By focusing on the perspective of the subsequent Generation Z, the study closes a research gap that has received little attention to date. It thus makes a scientific contribution to succession research as well as practical findings for business families succession planning and consulting contexts.

Keywords: family business; succession; generation z; personal influencing factors; family-internal influencing factors; family-external influencing factors