Top PDF Tacit knowledge transfer in family business succession

Tacit knowledge transfer in family business succession

Tacit knowledge transfer in family business succession

The most striking difference in the founder's role emerges when the founder no longer has direct financial interest, or at least a controlling interest, in the business. With the firms involved in this study, when the founder was not a family member and no longer had a direct significant controlling financial interest, the founder essentially exited the company and was not involved in the day-to-day decisions or in macro-decisions about the business. However, when the successor was a family member, there was a continued role for the founder, even after he no longer had significant or controlling financial interest in the business. In these family-successor- led businesses, the founder continued to play a role that can best be characterised as a mentor or supporter of the successor. In one firm, the founder continued as a director of the family business long after he had any direct financial interest in the business. In this family business (C-5-COOLWAY), the founder retained an office in the head office of the business. This office was used by the founder as a base from which to continue his community and charitable involvement. It is significant to note that the founder and successors of this business identified community involvement and giving back to the community as a key value in operating the business. Given the identification of this as a key value of the business by both the founder and family successor, it could be argued that the founder was continuing to contribute to the business, while no longer actively engaged as an employee or shareholder. In response to probing questions involving this ongoing involvement, the family- member successor indicated that, at least in part, the provision of the office – and the fact that it was located in a prominent location within the business – was a way of demonstrating respect for the founder. It is also worth noting that the founder, as a retiree, only lived six months of every year in the city where the business is located.
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Tacit knowledge transfer in family business succession

Tacit knowledge transfer in family business succession

Small business is the most common firm structure in the Canadian economy and accounts for the single largest share of economic activity. As the founders of these firms move to normal retirement age, they begin the transfer of the business to a family or non-family member. When the second generation assumes control of the firm, issues related to generational transfer of knowledge become important. Financial and income and tax considerations have received the bulk of attention in research. This study focuses on knowledge transfer from the founder to successor. Tacit knowledge has been identified as a key strategic resource and passing this knowledge from the founder to the successor is a key element in transition that ensures the business is viable and remains in the family
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Family business succession - trust and gender issues in family and non-family succcession

Family business succession - trust and gender issues in family and non-family succcession

Small business is the most common firm structure in the Canadian economy and accounts for the single largest share of economic activity. As the founders of these firms move to normal retirement age, they begin the transfer of the business to a family or non-family member. When the second generation assumes control of the firm, issues related to generational transfer of knowledge become important. Tacit knowledge has been identified as a key strategic resource and passing this knowledge from the founder to the successor is a key element in successful transition. This study explored the relationship of gender differences in tacit knowledge transfer in family business succession and the role of trust in the succession process. A qualitative methodology based on the analysis of multiple case studies is used for this research. Eight cases of family business succession were investigated, with data collected from public sources and interviews with founders, successors (family members and non-family members), and key observers. The role of trust in family business succession is supported by the study’s findings, but the findings expand on the existing literature by differentiating between relationship trust and business competence trust and defining the two types of trust as essential. This study supports prior knowledge that female successors are often viewed as having less leadership ability than male successors. In this study, however, females experienced more business socialisation than reported in prior studies.
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Factors Of Transferring Tacit Knowledge In Family Business Succession In Malaysia

Factors Of Transferring Tacit Knowledge In Family Business Succession In Malaysia

This research covers knowledge management. Knowledge management is the power of collective wisdom to increase responsiveness and innovation. Knowledge management divides up with the unanticipated stimuli and creative unplanned reactions. Knowledge management consists of tacit knowledge. This research is to identify the factors of transferring tacit knowledge in family business succession. Tacit knowledge can become the valuable asset to help sustain the family business in future. Therefore this research is to explain the importance of relation between successor and predecessor; and characteristics of tacit knowledge transfer towards succession planning. Sample of 100 respondents from selected small medium entrepreneurs that related to family business have been collected. The SPSS 20.0 version has been used to analyse the data by using multiple regression analysis, Pearson Correlation analysis and crosstabulation data analysis. The result shows that relation between successor and predecessor is significant in transferring tacit knowledge towards succession planning. In conclusion, good relation between successor and predecessor can influence the process of transferring tacit knowledge in succession planning.
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Modelling the Knowledge Transfer Process between Founder and Successor in Vietnamese Family Businesses Succession

Modelling the Knowledge Transfer Process between Founder and Successor in Vietnamese Family Businesses Succession

Family businesses are contextualized in their environment making an in-depth multiple case study approach helpful for research investigation (Zaefarian et al., 2016). This study thus adopts a qualitative, multiple case study designed to add deeper understanding of the factors that influence the knowledge transfer process from founder to successor, as well as the relationship between these factors in Vietnamese family businesses. Qualitative approaches have been widely adopted in family business research (Chirico, 2007; Ratten and Tajeddini, 2017). The study focused on five cases, in line with the suggestion of Eisenhardt and Graebner (2007) that the rigor of theory improves when data are drawn from at least four cases. This also met Eisenhardt’s (1989) sample size suggestion for generating new theory and Creswell (2013, p. 101) advocates no more than four or five cases in a single study because “the more cases in individual studies, the less the depth in any single case”.
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To succeed or not to succeed: A multiple perspectives literature review of research in family business succession

To succeed or not to succeed: A multiple perspectives literature review of research in family business succession

The literature on family owned businesses (FOBs) has highlighted the unique challenges that face this form of organisation, and one of the most important issues concerning the FOB is the challenge of management succession. According to a survey of 272 top executives of family firms done by Chua, Chrisman, & Sharma (2003), they found succession to be the number one concern. Succession is one aspect which gives FOBs their distinctiveness and is suggested by Ward (1987) to be a defining factor: “we define a family business as one that will be passed on for the family’s next generation to manage and control” (Ward, 1987: 252). Research indicates that although succession planning is one of the most significant factors that determine the continuity of the FOB from one generation to the next generation, many family firms do not plan succession (Dyer, 1986; Lansberg, 1988; Ward, 1987). The statistics show a bleak picture with only one third of family businesses surviving into the second generation, and only 10-15% making it into the third generation (Birley, 1986; Ward, 1987), with poor successions as the source of the problem (Le Breton-Miller, Miller, & Steier, 2004). Lansberg (1988) suggests that the decline of family owned businesses can have a wider impact on society with serious social and economical consequences. The continuity of family firms is of particular interest as they represent a significant proportion of employment and GDP in many capitalist countries (Ward, 1987). McGivern (1978) suggests that in the UK, management succession was almost equal to financial failure as a major cause of FOB failure, and according to demographic research carried out by Shanker and Astrachan (1996: 117), it is predicted that 3 million US family businesses alone will be forced to transfer ownership in the next 15 years, therefore the imminent challenge of effective succession planning is of great concern, which is reflected in the dominance of succession in family business studies (Brockhaus, 2004).
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Investigating knowledge transfer methods and practices in a small family-run business

Investigating knowledge transfer methods and practices in a small family-run business

5.3 External knowledge contributes to organisational learning in a family-run business Although there may not be much explicit knowledge transfer within the business, the explicit knowledge transfer in this case occurs usually through an external education. Predecessor C specifically mentioned that the knowledge they transfer as predecessors is insufficient and that they encourage the successors to acquire external knowledge. Two successors began to work for the business right after they completed high school and the other two went to colleges first before coming to work for the business full-time. With three out of four participants, having acquired external knowledge in the form of a formal education it can be concluded that this is an essential part for knowledge development in such an organisation. Experience and formal training develop the knowledge that is embedded within individuals which consists of skills, abilities and learning capacity (Boyd, Royer, Pei & Zhang, 2015). Predecessor C also went on to mention how they acquire external knowledge, then come back and teach this knowledge to others in the organisation. This type of practice is what organisational learning is based on. Internalization, a part of the knowledge conversion cycle, can best describe this. Internalization involves conversion of knowledge that is being transferred from explicit to tacit, where explicit sources are studied and learned then internalized where it is changed into tacit knowledge (Frost, 2012).
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Succession Planning In Family Business : A Study Of Family Entrepreneurial Teams In Melaka

Succession Planning In Family Business : A Study Of Family Entrepreneurial Teams In Melaka

First and foremost, praises and thanks to the God, the Almighty, for His showers of blessings throughout my research work to complete the research successfully. I would like to express my deep and sincere gratitude to my research supervisor, Dr. Norhidayah binti Mohamad for giving me the opportunity to do research and providing invaluable guidance throughout this research. She has taught me the methodology to carry out the research and to present the research works as clearly as possible. It was a great privilege and honour to work and study under her guidance. I also would like to thank Prof. Salleh Yahya for sharing their expertise and knowledge in the Research Method subject that really helped me through in the writing of this research. I am extremely grateful to my parents for their love, prayers, caring and sacrifices for educating and preparing me for my future. Finally, my thanks go to my entire course mate, lecturers and the people who have supported me in completing the research directly or indirectly.
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Effective transfer of tacit knowledge across borders   A case study of DHV in the Netherlands and India

Effective transfer of tacit knowledge across borders A case study of DHV in the Netherlands and India

DHV is a leading international consultancy and engineering firm, providing services and innovative solutions in Transportation, Water, Building & Industry, Urban and Regional Development, and Environment & Sustainability. DHV offers services, including management consultancy, advice, design and engineering, project management, contract management and asset management. DHV, headquartered in the Netherlands, maintains a network of 75 offices worldwide with a staff of 6.000 DHV is known internationally especially in the fields of Water, Aviation and Intelligent Transport Systems. At this moment DHV has eight home-countries, which will be enlarged to nine with Vietnam. DHV wants to built long term relationships and to understand the local contexts of these countries in order to grow the business. Therefore the corporate management strategy of DHV is to create self-sustaining business units with a local management style. Furthermore, DHV has a multi- domestic strategy and thereby it can be defined as a multinational organization. However, DHV turns slowly into a transnational organization, which increases global competitiveness by combining centralized and decentralized roles and responsibilities. Resources are integrated through strong interdependencies (see appendix A: Description of DHV).
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Job Rotation: An Effective Tool to Transfer the Tacit Knowledge within an Enterprise

Job Rotation: An Effective Tool to Transfer the Tacit Knowledge within an Enterprise

To identify the tacit knowledge transfer subjects is the origin of tacit knowledge transfer process, generally con- tains four steps. 1) According to enterprise’s strategic development target, positioning key positions as know- ledge receiving jobs. Enterprise strategic objective is based on the core business processes, so that to identify the key positions in the core business process and to achieve the goals of these jobs will directly decides the realiza- tion of enterprise strategic target. 2) Comparing the tacit knowledge gap between the qualification of key posi- tions and the existing incumbents, and determine the tacit knowledge transfer requirements. Use competency analysis method to analyze key positions, and identify the necessary tacit knowledge which the core positions require and then to measure the tacit knowledge stock of the incumbents to analysis the tacit knowledge gap between the incumbents and job qualifications, as well as the demand for knowledge transfer. Measurement tools and methods could be chose depending on the type of tacit knowledge, for example, the tacit knowledge with low implicit levels (e.g. professional skills, problem solving, etc.) can be measured with evaluate scale; For the tacit knowledge with high degree implicit (e.g. individual mental models) are generally measured with the scene view method, experiment method, role playing method, man-machine auxiliary experiment. 3) According to the demand of the tacit knowledge transfer, to position the knowledge outputting positions as target rotation job. Utilize the knowledge map or job analysis to position the target outputting positions which own the required knowledge. If the enterprise need to transfer the knowledge stored in an individual, then we need to position knowledge carrier person as the primary knowledge transmitter. 4) To select rotators. Enterprises select the right person in the knowledge receiving positions to rotate to the knowledge outputting positions in order get new ta- cit knowledge. This requires rotators have subjective willingness to participate in job rotation and have good learning ability.
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Entrepreneurship Education: Tacit Knowledge and Innovation Transfer. An Analysis Through Nonaka’s Model

Entrepreneurship Education: Tacit Knowledge and Innovation Transfer. An Analysis Through Nonaka’s Model

Several authors have studied the impact of entrepreneurship education programs in general; a few, however, have been interested in investigating the impact of each component of the program on the studied variables. It is interesting to study the impact of each of these components in order to assess their relevance and to continuously improve the content. Nonaka's model allows us to understand the transmission of knowledge in the context of a company in a very practical way. This can lead to an in-depth reflection on the contribution of each component of a training program in entrepreneurship. Moreover, it is clear, as often cited in the literature of entrepreneurship education, that some methods should be preferred in these programs. These would be capable of transmitting tacit knowledge (in the form of experiences, personal capabilities ...) instead of explicit knowledge that aspiring entrepreneurs can find in books and manuals. Participation in conferences, fairs, forums, etc. can allow future entrepreneurs to explore the business environment, discover opportunities and have new ideas that can lead to creativity and innovation. This knowledge is crucial in entrepreneurship, given the importance of real experiences.
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Family Business Transfer: The Importance of Continuing the Business

Family Business Transfer: The Importance of Continuing the Business

The succession process in a company still is uncomfortable, but very important to its predecessor. The succession plan continues to be informal or non-existent in most of our cases studies. In the second and fourth cases, the succession process already started, but without a succession plan. In the fifth case, there is also no succession plan, but the predecessor was the only one that wanted the succession. The heirs did not want the succession takes place. The third case is the most worrying because no solution was found. That is why this kind of research is necessary to sensitize the owners for the existence of solutions and show the advantages that exist in business continuity. Finally, the first case is good example of how to make the succession planning. The owners had a clarity and information above average about the need to prepare the succession and about the advantages for everyone involved in the business continuity and even with the use of external consultants, so that the succession plan is the most complete and effective for the company.
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The Influence Of Situational Leadership In Family Business Towards Succession Planning At SME's Melaka

The Influence Of Situational Leadership In Family Business Towards Succession Planning At SME's Melaka

To sustain the family business the director should go for succession planning method. Succession planning is not an issue that many organizations address in any systematic way. But many profit or non-profit organizations that are small (with fewer than 10 employees) may be facing other organizational challenges, thinking about who the next executive director might be or what would happen if the director of finance suddenly left is not high on their priority list (Foundation Canada, 1996 ). This presents a particular challenge for smaller firms as they usually lack the suitable resources in order to make full usage of their knowledge stock which is particularly at risk in situations of staff turnover and/or long-term absences, as the small staffing level does not allow for an immediate replacement (Durst & Wilhelm, 2012)
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Knowledge Dynamics in Family Business

Knowledge Dynamics in Family Business

Furthermore, since the family members have a closer relationship at a personal level, the source's trustworthiness is not disputable and influence substantially the recipient's behavior in the knowledge transfer process. Even though some employees are not family- related receive and generate the same level of trust as the family members. Similarly, the availability and desire to transfer knowledge have to be taken into consideration. Romanian family business owners’ main goal is that their children take over and grow the company, therefore they tend to push their siblings into learning faster and accumulate knowledge from within the company at a younger age, later through academic and working outside the company to improve the chances of survival on the long term on the family company. In non-family organizations, this may not happen since there are high staff turnover and agency problems. The family is acting as a reference system of well- defined values, behaviors, and norms that are unconsciously transmitted from the incumbent towards the successor from its birth. These have the role of capitalizing on the traditions, acquiring, and increasing knowledge to further integrate and apply it in the business. The level of commitment is affecting the effectiveness and quality of the knowledge transfer, accelerating, or impeding it.
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The Meaning of Tacit Knowledge

The Meaning of Tacit Knowledge

{Abstract high level plans, Abstraction, Access constraints, All purpose algorithms, Analogies, Aphorisms, Artistic vision, Assumptions, Behaviour, Beliefs, Business knowledge, Common sense, Competitive advantage, Complex multi-conditional rules, Concepts, Constructs, Content, Contradiction, Convincing people, Crafts, Culture, Customer's attitudes, Customs, Data, Decision making, Descriptors, Discussion, Everyday situations, Examples can be articulated, Expectations, Externalisation, Face to face transfer, Goal attainment, Grammatical rules, Gut feel, Habits, Heuristics, Hunches, Ideals, Imitation, Impressions, Information, Information placed in meaningful context - eg. Message, Innovation, Interaction, Job knowledge, Judgement, Justified true belief, Know how, Knowledge base that enables us to face the everyday world, Knowledge of designs, Logical rules, Maxims, Meaning, Methods, Negotiation, Observation, Perceptions, Performance, Perspectives, Political correctness, Practical know how, Practice, Prescriptive knowledge, Principles, Private knowledge, Procedural in nature, Procedures, Process, Proverbs, Reproduction, Riding a bicycle, Ritual, Routine, Rule, Rules of thumb, Schema, Script/Scripted, Semantics, Shop lore, Stories, Subjectivity, Swimming, Task management, Tasks, Team coordination, Technique, Technology, Theories, Tradition, Trial and error, Tricks, Understanding, Understanding of categories, Values, Way things are done, Wisdom} ⊆ aTK
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Facilitating knowledge transfer based on a resource based view of tacit knowledge stock: a skills assessment perspective

Facilitating knowledge transfer based on a resource based view of tacit knowledge stock: a skills assessment perspective

individual in order to help them in their career aims (SFIA 2018; von Konsky et al. 2016). A total of 97 skills are defined in SFIA in six categories, namely, Strategy and Architecture, Business Change, Solution Development and Implementation, Service Management, Procurement and Management Support and Client Interface (SFIA 2018). There are seven levels of increasing responsibilities for all the skills: follow, assist, apply, enable, ensue/advise, initiate/influence and set strategy. Each skill is described based on the responsibility level of autonomy, influence, complexity and business skills needed by the employees. This research proposes skills assessment as a critical method to measure tacit knowledge stock. Assessment as a method has been previously researched in the area of knowledge management to enable process improvements in IT Service Management (Shrestha et al. 2018). Knowledge is considered a significant resource for organisations and it is often studied from a resource- based view using the VRIO framework. A brief overview of these terms follows next.
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The family business succession paradox : maintaining family control through empowerment and inclusion of external actors

The family business succession paradox : maintaining family control through empowerment and inclusion of external actors

Based on the analysis of the interview questions, mentoring is deemed a useful and often used tool to cope with the succession process in German family businesses. The differences are not only found in the degree and form of how mentoring is used, but strongly vary on who is being mentored and who is not. This varies from using mentoring explicitly only in a family context, to using it to develop employees outside of the family. The two largest companies, measured by the number of employees, in the sample both explicitly expressed that both formal and informal mentoring were being used in their companies. This strengthens the argument that Inzer and Crawford (2005) made, that the usage of both the formal and informal mentoring helps achieve the best results. Interestingly, contrary to the smaller companies, mentoring was explicitly stated to be used also on members outside of the family. Both of these companies further distinguished themselves through the presence of extensively planned leadership and personnel development systems. These are characterized by actively observing, screening and then targeting high potential individuals that are then placed into mentoring relationships. The fact that this assignment happens purposefully by a third party, that is neither mentor, nor protégé makes the fall under formal mentoring, as Murray (2001) introduced. These individuals are then further educated and developed through the use of other leadership development tools. For both of these companies, the concept of what exactly mentoring is defined as did not have to be explained. Both had knowledge of the tool and were aware of the difference between formal and informal mentoring. Additionally, it was emphasized that management itself was also responsible for identifying promising individuals and then creating a mentoring relationship. The other
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Insights from Canadian case studies on succession and knowledge transfer in family firms

Insights from Canadian case studies on succession and knowledge transfer in family firms

Practical implications: Trust is a precondition for knowledge transfer in family business between the founder and successor and this was consistent with male and female successors. In this study all founders were male and in family firms all founders identified trust as a requirement or given in succession (Henry, Erwee, & Kong, 2013a). Both male and female successors had similar views about trust being a key to succession (and knowledge transfer). However, female family members (daughters) had a different view of the level of trust than did the male successors (sons). This view centred on the female successor’s perception that the founder did not trust or believe that they were competent to assume leadership. While this study does not directly use FIRO (Fundamental Interpersonal Relationship Orientation) theory in the analysis used by Haberman and Danes (2007), comments from the female successors in this firm imply similar findings – which the father- daughter business succession differed on the inclusion dimension of the theory. The inclusion dimension subcategories of connectedness and shared meaning clearly have implications for the nature of the trust. In the father-daughter relationships in this study daughters’ (female successors) reports of the relationship was typified by assertions that the fathers consistently questioned or challenged the daughters’ decisions or even the direction that the daughters wanted to take the business. Both female family successors described this as evidence of a lack of trust.
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Succession Planning Towards Business Sustainability Based On Knowledge Management

Succession Planning Towards Business Sustainability Based On Knowledge Management

Knowledge management is divided into two which are explicit knowledge and tacit knowledge. So the objective of the study is to identify the effective ways of transferring tacit knowledge to the next generation family members. Moreover, the study also investigated the relationship between tacit knowledge and business sustainability. To be sustained in the business, the study also identified barriers occur in the process of transferring the knowledge in succession planning.

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Determinants for the transfer of knowledge and technology  in business and economy

Determinants for the transfer of knowledge and technology in business and economy

With increased expenditures on basic research funding, national governments can expand access to permanent informational resources which influence the development of the economy (Salter and Martin, 2001). However, we cannot forget that sometimes this knowledge is so called "tacit knowledge", comprehensible for only a specific group/network of scientists, who are able to find a practical use for it. Research shows that the benefits from funding are directly translated into the development of new technological solutions (Beis and Stahl, 1999). This occurs most often in the pharmaceutical, petroleum, chemical and food industries. The concept of open innovation was initially the domain of large, international companies. At present, experience shows that small and medium-sized enterprises should also take advantage of such opportunities. The evidence for this is that, on a global scale, small and medium-sized enterprises are rapidly growing. The source of their competitive advantage is the protection and utilization of their intellectual property through the opening of the innovation process (Keupp and Gassmann, 2007).
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