SUCCESSION PLANNING IN FAMILY FIRMS IN THAILAND: A GENDER-BASED ANALYSIS

Abstract

This research examined succession planning in family firms in Thailand, with an objective of determining whether predecessor (firm leader) gender made a difference in the comprehensiveness or perceived success of the succession process. A questionnaire was distributed to Bangkok-area business owners of family firms that had gone through a leadership transition (n = 254), including 168 male-led firms and 86 female-led firms. Analysis was conducted using structural equation modeling (SEM). Results showed that the firm owner’s age, firm size and organizational formality influenced the comprehensiveness of the succession planning process, but reliance on either family funding or external capital access did not. The comprehensiveness of the succession planning process had a significant effect on perceived success of the succession planning process. These results are exploratory due to the relatively small and non-representative sample, but they do indicate that more consideration is needed to relate gender of the firm’s owner and the succession planning process.