Family Business Succession and Post Succession Performance: Evidence from Thai SMEs

Abstract

This paper aims to study the key factors affecting the process of business succession and post succession offamily firms in Thailand. The purpose of this research paper is to identify the level of impacts and classify intofour determinants i.e. the personal factor, the intra-family relationship factors, the context factors, and thefinancial factors. The paper also aims to study the relationship between the four factors and the post successionperformance of family firms in Thailand. The methods use to assess the level of impacts of the factors onsuccession process of family firms in Thailand is by using the method of Structural Equation Model (SEM). Theresults of the SEM are based from the sample size 374 family business owners across various industries inThailand. Context factors and personal factors are the two factors that have the highest levels of impact on theeffectiveness of the succession process in comparison to the financial factors and the intra-family relationship.The results from this research paper also indicate that the succession process and the post-successionperformance are positively related with a high level of impact.