Successional Issues within Asian Family Firms

This article explores succession within Asian family firms by considering whether experiences of succession are influenced by ethnicity. To understand these factors and develop strategies to assist succession this article explores experiences of Kenyan Asian family businesses. While British Asian firms are facing succession for the first time, a large proportion of the Kenyan Asian business community has already experienced first generation succession and the survivors are now preparing for round two. By drawing on the experiences of the Kenyan cases this article argues the findings may be applied to their British counterparts. The key findings from this article identify mothers of the heirs as crucial buffers between the generations. Previous experiences of succession have caused devastating splits both for the business and the family resulting in considerable motivation to invest resources into long-term planning as illustrated by the unexpected emphasis on separation of ownership and management. Finally, while ethnicity is argued to have a significant impact on succession, the situation is compounded by vast attitudinal differences between the generations, potentially leading to a time bomb within family firms.