Succession in the Family Firm: A Cognitive Categorization Perspective

Abstract

Using cognitive categorization as a foundation, this paper develops a theory of leadership succession in the family firm. We specify a general leadership succession model that includes the process by which both the parentqleader and childqsuccessor evaluate each other and themselves through the cognitive categorization process, and we develop testable propositions from the parentqleader and childqsuccessor classifications. This paper posits that these classifications influence the succession process as the parentqleader prepares the childqsuccessor for leadership, and that the childqsuccessor determines both the desirability of assuming leadership and his or her readiness to accept succession.