Family business succession as knowledge creation process

Purpose – The purpose of this paper is to broaden the understanding of family business succession as organizational knowledge creation process. Design/methodology/approach – The paper is built on organizational knowledge creation theory and reviews literature on family business succession. Four modes of knowledge conversion are followed to identify knowledge creation activities contributing to family business's knowledge base and to develop propositions. Findings – Successful realization of succession depends not only on “traditional” knowledge creation activities of socialization and internalization, but as well as on active involvement of successor(s) in many aspects of business functioning. This contributes not only to widening successor(s) knowledge base but as well as to the firm's tacit and explicit knowledge triggering a new spiral of knowledge. Research limitations/implications – The paper limits the research on leadership succession as one of the most challenging tasks in family business's life c...

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