Successor Traits and its Effectiveness on Sustainability in Family Business in India

Abstract

Family businesses made indisputable contribution to the speedy economic development of India. For running the family business in a smooth way, successor traits are essential. For this study two dimensions of successor traits (successor knowledge and successor willingness) were studied. Family business succession is the process of transferring management and possession of business to the next generation of family members. This transfer may also include family properties as part of the process. Family members normally play a scheming role both in management succession as well as the ownership succession. That is why this study seeks out to access the influence of successor knowledge and successor willingness on sustainability in family business in India with the help of SPSS (version 21). The study is based on the sample of 200 respondents from Uttarakhand India. A questionnaire based on 18 statements with five points likert scale was used. Factor Analysis and Cronbach’s alpha value were applied to test validity and reliability. For testing the hypotheses regression was applied. Some demographic information were also discussed. Study reveals that the dimensions of successor traits (Succession Knowledge and Succession Willingness) significantly related to the sustainability to the family business in India.

Keywords: Family Business, Successor Knowledge, Successor Willingness, Sustainability, India

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