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Macau Periodical Index (澳門期刊論文索引)
- Author
- Trigo, Virginia; Antonio Nelson
- Title
- Third generation family business: a comparison of succession issues in two Brazilian companies
- Journal Name
- Euro Asia Journal of Management
- Pub. Info
- Dec. 2010, Vol.20, No.2, pp. 159-174
- Abstract
- Abstract : In Brazil there are approximately 4.1 million formally established enterprises. About 98% of them are micro and small firms mostly family businesses of which 75% are being operated by the first generation, 20% are in the hands of the founder's offspring (second generation) and only 5% are controlled by the third or subsequent generations. These percentages show that the chances of companies remaining in the control of the family are drastically reduced from generation to generation and thus the two main questions that guided our research: (1)what are the reasons for such high mortality? and (2) how is succession prepared in family enterprises? This paper is part of a broader research that explores management issues in family businesses in Portuguese speaking countries and examines the cases of two Brazilian firms both founded by German immigrants in two different and prosperous industries that experienced successful transfers from the first to the second generations but had conducted with the main actors in the two companies unveil some of the factors that dictated these disparate outcomes. Paragraph Headings: 1. Introduction 2. Theoretical framework 3. Stakeholders and the family business 4. Selection of cases and context of the study 5. Research strategy and method 6. Description of case studies 6.1. Company A 6.1.1. Company foundation 6.1.2. Strategic moves 6.1.3. Involvement of successors in the company life 6.2. Company B 6.2.1. Company foundation 6.2.2. Strategic moves 6.2.3. Involvement of successors in the company life 6.3. Succession itself 7. Conclusion Tables: 1. Summary of critical events Figures: 1. Stakeholders and the family business