A study of business succession in Indian family businesses in South Africa.
Date
2019
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Abstract
The aim of this study was to identify and understand the experiences of Indian family businesses
in South Africa with regard to business succession. A descriptive research design was selected as
it was deemed to be most appropriate method to answer the research question for this study. A
positivist research philosophy was utilised to address the research objectives, and inferential
statistics were used to answer the research questions. A quantitative approach was selected as it
was the most appropriate research methodology that aligned to the research strategy. The data
collected through an online survey of 51 businesses owned by persons of Indian origin. The study
focessed on six areas that influence business succession: the Stage of the Family Business and
Family Control, External Factors, Family Culture and Relationships, Family Conflicts, Readiness
of Successor(s), and Identification of Successor(s). The key findings of the study highlighted that
relationships exist between Stages of the Business and Family Control, Family Culture and
Relationships, Family Conflicts, and Identification of Successor (Relationship) with the level of
preparedness for business succession. Additional factors influencing the implementation of
succession planning in South African Indian family businesses included: the relationship of
readiness for business succession and the stage of the business (1st/ 2nd/ 3rd generation), the size of
the business, the level of conflict in a business, value-driven businesses, key desired attributes in
potential successors, areas of conflict and the readiness of a business for the exit of key member(s).
The implications of this study for theory and practice highlights the significance of the process of
business succession and encourages those who have not started this process, to realise this and
begin paving the way for a successful and sustainable multi-generational business
Description
Masters Degree. University of KwaZulu-Natal, Durban.