Succession Dilemma: Power of Perception, Transition Courage, and Assuming the Helm

Authors

  • Nikolas Wongso Universitas Ciputra, Indonesia
  • Metta Padmalia

DOI:

https://doi.org/10.29040/ijebar.v9i2.17193

Abstract

Succession process is one of the greatest challenges involved in the continuance
of family businesses through generations. Incumbent reluctance to step down is
one of the most prevalent challenges, which can prevent successors from
replacing incumbents accordingly. This study aims to examine the impact of
perceived business performance on successor willingness to step in, the impact
of successor willingness to step in on incumbent willingness to step down, and
the mediating role of successor willingness in the relationship between
perceived business performance and incumbent willingness to step down. This
study utilizes the quantitative approach with the data collected through 182
respondents that include incumbents, successors, or a combination of the two in
family businesses. Data analysis was carried out using the Partial Least
Squares-Structural Equation Modeling (PLS-SEM). Results indicate that
perceived business performance has a significant, positive impact on successor
willingness to step in. Additionally, successor willingness has a significant
impact on incumbent willingness to step down. Analysis establishes successor
willingness to step in to mediate the relationship between perceived business
performance and incumbent willingness to step aside. These findings can be
helpful to enhance succession planning, leadership replacement strategies, and
sustainability of family businesses.

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Published

2025-06-29

How to Cite

Wongso, N., & Padmalia, M. (2025). Succession Dilemma: Power of Perception, Transition Courage, and Assuming the Helm. International Journal of Economics, Business and Accounting Research (IJEBAR), 9(2). https://doi.org/10.29040/ijebar.v9i2.17193

Issue

Vol. 9 No. 2 (2025): Vol. 9 No. 2 (2025): IJEBAR : Vol. 9, Issue 2, June 2025

Section

Articles

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