DETERMINANTS OF SUCCESSOR SELECTION: EVIDENCE FROM FAMILY-OWNED SMES IN MOROCCO

Abstract

The increasing mortality rate of family companies worldwide makes the investigation of the problems of succession one of the priorities that has fascinated the community of researchers recently. This study contributes to the analysis of the succession issue from the successor's point of view, through the investigation of the potential successor selection process and choice of determinants. This study's originality is in its attempt to scrutinize the phenomenon in question through the entrepreneurial and sociocultural lens. Also, this study aims to present some managerial implications that can support the founders of Moroccan family-owned SMEs (Small and Medium sized Enterprises) in setting up a succession process which will enable them to select their potential successors in an effective way. A qualitative approach using semi-structured interviews was conducted with six managers of five Moroccan family-owned SMEs. The research will contribute towards the scholarly debate about the succession issue, which is considered a significant field that deserves a deeper analysis, especially in the context of Moroccan family-owned SMEs. The results of this study also revealed that there is a heterogeneity of issues in the selection of potential successors from one family business to another and from one business family to another. Indeed, the trust between the predecessor and the potential successor, as well as between the latter and the other stakeholders, the business families’ subjective norms (i.e., nepotism, primogeniture, patriarchy), the successor’s involvement, the willingness, the motivation, the level of education, the knowledge and the accumulated experiences, are the main determining factors considered when selecting the potential successor of family SMEs.