Succession process in a family business: knowledge management overcoming resistance to organizational changes

Abstract

This study examined the perception of a family business' employees over changes brought about by the company's succession procsess through the identification of existing problems and the probabilities of overcoming them. The company was classified as a family business organization as per Bernhoeft´s (1991) definition, and the perspectives proposed by Motta (2001) were used as a basis for change analysis. The succession challenges were studied through the knowledge management viewpoint. The methodological approach is characterized as a qualitative descriptive study done through interviews and document analysis. Quantitative data was used, with the application of questionnaires in order to obtain primary data. Data analysis is mainly characterized by its qualitative and descriptive content. After data analysis, the following issues were detected: (1) lack of or inneficient internal communication, (2) the decision making process was either slow or not committed to the desired results and (3) there was either dual leadership or no leadership. It was concluded that in order to achieve the objectives of the changes, it would require a new look into the intraorganizational integration to eliminate features of the family business such as lack of dialogue and unilateral decisions. It is finally suggested the use of strategies for sharing information and knowledge that will pave the way for understanding the entire succession process, overcoming uncertainties and individual resistance. Thus, the inclusion of Knowledge Management in the family business succession process will result in more aware leaders, managers and employees in terms of change of power during the mentioned process.