Succession Planning and Knowledge Management in family owned business firms.Miss.Antonette Asumptha J

AuthorsFirst Author: Miss. Antonette Asumptha J, Second

Author: Mr.C.MathanFirst Author Affiliation: PHD Scholar,National Institute

of Technology, Trichy.Email: antonetterayan@gmail.com

Abstract Critical confrontation of the family firm is succession

planning. The family business firm needs sharing of knowledge from one generation to another to improve the recital of the firm. An element of creativity is acquiring, storing and disseminating knowledge among family members in a business set up. Here knowledge sharing if not given importance and can be more alarming as the basic tool for educating its employees is through knowledge transfer.The heart of the paper is transfering knowledge among its family members such as succession planning(in a satisfactory manner). Here we are using the Structural Equation Modeling (Amos) with two factor satisfaction and knowledge transfer.Thus concluding knowledge is transferred successfully with satisfaction among its members.

Index Terms: • Knowledge Management, • Knowledge Sharing,• Family Business Firms,• Succession Planning.

Introduction• Family Businesses(FB) is a global world wide type of business

organization.(Nordqvist, 2005; Chrisman et al., 2005; Kettana 2013).Most families fail to make a business stage of succession. (Miller et al. 2003). Approximately about 30% of businesses (Paula Rodrigues, Ana Pinto Borges and Alberto Aleixo Portugal ,2014) survive the transition to the second generation, and only 10 15% evolve the third generation ‐(Beckhard and Dyer, 1983a, 1983b; Lansberg, 1999; Ward, 2004, Bracci and Vagnoni, 2011).Some of the largest and most successful companies in America are family owned and operated, yet 70 percent of family run businesses don’t make it to the second generation; a full 90 percent never make it to the third generation.( Gene Siciliano,2009)

2.Research Gap:

Research Model:Fig. 1: Structural Equation Model : SAT-satisfaction, D-Knowledge Sharing.

4.Research Methodology:Measurement development• In order to take advantage of te precision of dimensions,we use a

multi-item method (likert scale with five points).– No or little extent=1– Some extent=2– Moderate=3– Great Extent=4– Very great extent=5

• Nineteen variables were measured reflecting two dimensions Satisfaction and Knowledge sharing are used here.

• The instrument is included in the Appendix A.5.Measurement Assessment • Content, Construct and discriminant validity was checked. The

model showed a perfect fit.

6.Results and Conclusions:Table 1 :Standardized Total Effects (Group number 1 - Default model)

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