The Relationship between Succession and Knowledge Development in Italian Family Businesses - Dissertation Example

Through a convenience sample of 29 family-owned Italian businesses, the study found that all of the subscales in Pyromalis et al’s (2006) framework have been agreed upon by the owners of family-owned Italian businesses.

These include their willingness to step aside in favor of their successors; the successors’ perceived willingness to take over; positive family relations and communication that have received agreement from the owners; succession planning; and the successor’s appropriateness and preparation. The factors which are significantly correlated with the effectiveness of the succession effort from the point of view of owners were ascertained, and these turned out to be the successor’s willingness to take over; positive family relations and communication; succession planning; and the successor’s appropriateness and preparation.

In addition, all of the subscales of Krueger & Day (2010) were agreed upon by the respondents and these include perception and creativity; intention; key beliefs and attitudes or self-efficacy; deeper beliefs and knowledge structures; entrepreneurial learning; and context matters. Finally, the following facets of knowledge management are significantly and positively correlated with the perceived effectiveness of the succession effort: positive family relations and communication have received agreement from the owners; succession planning; and the successor’s appropriateness and preparation.

The factors which are significantly correlated with the effectiveness of the succession effort from the point of view of owners were ascertained, and these turned out to be the successor’s willingness to take over; positive family relations and communication; succession planning; and the successor’s appropriateness and preparation. In addition, all of the subscales of Krueger & Day (2010) were agreed upon by the respondents and these include perception and creativity; intention; key beliefs and attitudes or self-efficacy; deeper beliefs and knowledge structures; entrepreneurial learning; and context matters.

Finally, the following facets of knowledge management are significantly and positively correlated with the perceived effectiveness of the succession effort: Key beliefs and attitudes or self-efficacy; entrepreneurial learning; context matters; and deeper beliefs and knowledge structures. Recommendations on further improving the succession efforts at Italian family-owned businesses have been put forth. CHAPTER 1 INTRODUCTION Background In this chapter, the researcher shall present basic information on the concept of succession (especially in Italian families) and how knowledge is developed within each generation to keep the business afloat through the generations.

In Italy, the majority of businesses that keep the country’s economy afloat are small businesses and most of these are “family-owned.” (ISTAT, 1996). Studies on Italian families have also shown that family members tend to “diffuse” their time for their family along with other routine activities, such as running a business.