View More View Less
Restricted access

Purchase article

USD  $25.00

1 year subscription (Individual Only)

USD  $700.00

While recent research on family business succession has focused on examining the importance of individual and family characteristics, the role of macroeconomic conditions has been often neglected. This paper investigates the impacts of macroeconomic conditions on family business heir's career choice intention using individual level cross-country data of 18 European countries for the year 2013. We find that the level of economic development measured by GDP per capita, growth of GDP per capita, and youth rate of unemployment influence a family business heir's career choice intention. We also demonstrate that beyond the cross-country differences in macroeconomic conditions, individual characteristics of siblings, age, gender, work experience in family business, and start-up time play an important role. To mitigate succession failures, policies towards business succession with related firm survival should be specifically designed depending on different macroeconomic and youth labour market conditions.

  • Ajzen, I. (1991): The Theory of Planned Behaviour. Organizational Behavior and Human Decision Processes, 50(2): 179211.

  • Agarwal, R.Kumar, A.D'Souza, K. (2016): Issues in Career Choices of Successors in Family Businesses: Perspective from Literature Review. Journal of Applied Management and Investments, 5(1): 119.

    • Search Google Scholar
    • Export Citation
  • Astrachan, J. H.Shanker, M. C. (2003): Shanker Family Businesses' Contribution to the U.S. Economy: A Closer Look. Family Business Review, 16(3): 211219.

    • Search Google Scholar
    • Export Citation
  • Barnes, L. B.Hershon, S. A. (1976): Transferring Power in the Family Business. Harvard Business Review, 54(4): 105114.

  • Baù, M.Hellerstedt, K.Nordqvist, M.Wennberg, K. J. (2013): Succession in Family Firms. In: Sorenson, R. L.Yu, A.Brigham, K. H.Lumpkin, T. G. (eds): The Landscape of Family Business. Cheltenham: Edward Elgar, pp. 167198.

    • Search Google Scholar
    • Export Citation
  • Blinova, T.Markov, V.Rusanovskiy, V. (2016): Empirical Study of Spatial Differentiation of Youth Unemployment in Russia. Acta Oeconomica, 66(3): 507526.

    • Search Google Scholar
    • Export Citation
  • Blumentritt, T.Mathews, T.Marchio, G. (2012): Game Theory and Family Business Succession: An Introduction. Family Business Review, 26(1): 5167.

    • Search Google Scholar
    • Export Citation
  • Brännback, M.Carsrud, A. (2012): Intentions in the Family Business: The Role of Family Norms. In: Carsrud, A.Brännback, M. (eds): Understanding Family Business. New York: Springer, pp. 2739.

    • Search Google Scholar
    • Export Citation
  • Brockhaus, R. H.Horwitz, P. S. (1986): The Psychology of the Entrepreneur. In: Sexton, D. L.Smilor, R. W. (eds): The Art and Science of the Entrepreneurship. Cambridge: Ballinger Publishing Company, pp. 2548.

    • Search Google Scholar
    • Export Citation
  • Carsrud, A.Brännback, M.Kickul, J.Krueger, N. (2007): The Family Business Pipeline: Where Norms and Modeling Make a Difference. Paper Presented at Family Enterprise Research Conference. Monterrey (Mexico).

    • Search Google Scholar
    • Export Citation
  • Cressy, R. (1996): Are Business Start-Ups Debt-Rationed? Economic Journal, 106(4): 12531270.

  • Criaco, G.Sieger, P.Wennberg, K.Chirico, F.Minola, T. (2017): Parents' Performance in Entrepreneurship as a Double-Edged Sword for the Intergenerational Transmission of Entrepreneurship. Small Business Economics, 49(4): 841864.

    • Search Google Scholar
    • Export Citation
  • Davidsson, P. (2004): Researching Entrepreneurship. New York: Springer Publication.

  • Douglas, E. J.Shepherd, D. A. (2002): Self-Employment as a Career Choice: Attitudes, Entrepreneurial Intentions, and Utility Maximization. Entrepreneurship Theory and Practice, 26(3): 8190.

    • Search Google Scholar
    • Export Citation
  • Dyer, W. G. (1986): Cultural Change in Family Firms: Anticipating and Managing Business and Family Transitions. San Francisco CA.: Jossey-Brass Publishers.

    • Search Google Scholar
    • Export Citation
  • Eurofound (2016): Start-Up Support for Young People in the EU: From Implementation to Evaluation. Luxembourg: Publications Office of the European Union.

    • Search Google Scholar
    • Export Citation
  • Evans, D. S.Leighton, L. S. (1990): Small Business Formation by Unemployed and Employed Workers. Small Business Economics, 2(4): 319330.

    • Search Google Scholar
    • Export Citation
  • Gartner, W. B. (1989): Some Suggestions for Research on Entrepreneurial Traits and Characteristics. Entrepreneurship. Theory & Practice, 14(1): 2737.

    • Search Google Scholar
    • Export Citation
  • Hair, J. F.Black, W. C.Babin, B. J.Anderson, R. E. (2010): Multivariate Data Analysis. 7th ed., Upper Saddle River: Pearson Education, Inc.

    • Search Google Scholar
    • Export Citation
  • Jones, K.Brinkley, I.Crowley, L. (2015): Going Solo: Does Self-Employment Offer a Solution to Youth Unemployment? London: The Work Foundation.

    • Search Google Scholar
    • Export Citation
  • Kemmelmeier, M.Król, G.Kim Hun, Y. (2002): Values, Economics, and Proenvironmental Attitudes in 22 Societies. Cross-Cultural Research, 36(3): 256285.

    • Search Google Scholar
    • Export Citation
  • KPMG Enterprise (2015): European Family Business Trends. https://Assets.Kpmg.Com/Content/Dam/Kpmg/Pdf/2015/12/European-Family-Business-Trends-2015.Pdf

    • Search Google Scholar
    • Export Citation
  • Laspita, S.Breugst, N.Heblich, S.Patzelt, H. (2012): Intergenerational Transmission of Entrepreneurial Intentions. Journal of Business Venturing, 27(4): 414435.

    • Search Google Scholar
    • Export Citation
  • Morris, M. H.Williams, R. W.Nel, D. (1996): Factors Influencing Family Business Succession. International Journal of Entrepreneurial Behavior & Research, 2(3): 6881.

    • Search Google Scholar
    • Export Citation
  • Neubauer, F.Lank, A. G. (1998): The Family Business: Its Governance for Sustainability. London: Macmillan Press Ltd.

  • Olson, J. E.Frieze, I. H.Wall, S.Zdaniuk, B.Telpuchovskaya, N.Ferligoj, A.Kogovsek, T.Horvat, J.Sarlija, N.Jarosová, E.Pauknerová, D.Luu, L. A. N.Kovacs, M.Miluska, J.Orgocka, A.Erokhina, L.Mitina, O. V.Popova, L. V.Petkeviciu-Te, N.Pejic-Bach, M.Rus Makovec, M. (2006): Economic Influences on Ideals about Future Jobs in Young Adults in Formerly Socialist Countries and the United States. Cross-Cultural Research, 40(4): 352376.

    • Search Google Scholar
    • Export Citation
  • O'Reilly, J.Eichhorst, W.Gábos, A.Hadjivassiliou, K.Lain, D.Leschke, J.Mcguinness, S.Kureková, L. M.Nazio, T.Ortlieb, R.Russell, H.Villa, P. (2015): Five Characteristics of Youth Unemployment in Europe: Flexibility, Education, Migration, Family Legacies, and EU Policy. Sage Open, pp. 119.

    • Search Google Scholar
    • Export Citation
  • Podsakoff, P. M.Mackenzie, S. B.Podsakoff, N. PLee, J. Y. (2003): Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88(5): 879903.

    • Search Google Scholar
    • Export Citation
  • Santos, F. J.Romero, I.Fernández-Serrano, J. (2012): SMEs and Entrepreneurial Quality from a Macroeconomic Perspective. Management Decision, 50(8): 13821395.

    • Search Google Scholar
    • Export Citation
  • Scherer, R. F.Adams, J. S.Carley, S. S.Wiebe, F. A. (1989): Role Model Performance Effects on Development of Entrepreneurial Career Preference. Entrepreneurship Theory & Practice, 13(1): 5371.

    • Search Google Scholar
    • Export Citation
  • Schröder, E.Schmitt-Rodermund, E.Arnaud, N. (2011): Career Choice Intentions of Adolescents with a Family Business Background. Family Business Review, 24(4): 305321.

    • Search Google Scholar
    • Export Citation
  • Shirokova, G.Oleksiy, O.Karina, B. (2016): Exploring the Intention-Behavior Link in Student Entrepreneurship: Moderating Effects of Individual and Environmental Characteristics. European Management Journal, 34(4): 386399.

    • Search Google Scholar
    • Export Citation
  • Van Praag, M. C. (2003): Business Survival and Success of Young Small Business Owners. Small Business Economics, 21(1): 117.

  • Wennekers, S.Van Stel, A.Thurik, R.Reynolds, P. (2005): Nascent Entrepreneurship and the Level of Economic Development. Small Business Economics, 24: 293309.

    • Search Google Scholar
    • Export Citation
  • Zellweger, T.Sieger, P.Halter, F. (2011): Should I Stay or should I Go? Career Choice Intentions of Students with Family Business Background. Journal of Business Venturing, 26(5): 521536.

    • Search Google Scholar
    • Export Citation