Post-Succession Turnover in Family-Owned Businesses: A Theoretical Framework

Abstract

Transgenerational succession is a primary aim of family businesses. The succession event often has consequences for the employees of the firm. A particular risk is employee turnover in the aftermath of transgenerational succession. Understanding the factors that retain employees in the wake of a succession event is of vital importance. The model presented here offers insight into the importance of successor characteristics and the trust that they evoke in fostering family business employee retention. This work has significant implications for how to maintain efficiency after a succession event for family business scholars and managers alike.