The Role of Knowledge Creation and Transfer in Family Firm Succession

ABSTRACT

The purpose of the study is to investigate the role that knowledge creation and knowledge transfer processes play in family firm intergenerational succession in Thailand. An exploratory qualitative case study approach is used. Interviews were conducted with successors and predecessors of small, medium and large Thai firms that have undergone leadership succession within the past five years (30 firms, for n = 60 interviews). Data were analyzed using a qualitative content analysis approach. There were 16 different knowledge approaches identified that are undertaken by the successor. These processes are commonplace to firms, including formal and informal, internal and external processes of knowledge creation and transfer. Most of these occur at different stages of preparation for succession (pre-succession, transition and succession stages). While some knowledge approaches are used across firms, others are specific to small or large firms. These knowledge approaches and stages were used to develop a knowledge process model for family firm succession. The research develops an original model of the knowledge processes associated with family firm succession. This model, which incorporates a staged succession model with the knowledge processes identified, explains how and why knowledge creation and transfer occur during the succession process.