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korean management review - Vol. 51 , No. 1

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korean management review - Vol. 51, No. 1, pp. 1-24
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 28 Feb 2022
Received 02 Jul 2021 Revised 16 Sep 2021 Accepted 30 Sep 2021
DOI: https://doi.org/10.17287/kmr.2022.51.1.1
Study of Analyzing Factors that Affect Successor’s Willingness to succeed in a Family Business: Using the Relationship of Trust as a Mediating Variable
Namjae Cho ; Giseob Yu
(First Author) Hanyang University (njcho@hanyang.ac.kr)
(Corresponding Author) Hanyang University (yugs@hanyang.ac.kr)
가족기업에서 후계자의 승계의지에 영향을 미치는 요인에 관한 연구: 승계자와 후계자의 신뢰 관계를 매개변수로

Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This research is an empirical study that analyzes the relationship of trust between an incumbent CEO and a successor during succession in a family business. We use the relationship of trust between an incumbent CEO and a successor as a mediating variable. A successor’s conversational ability, home environment, and involvement of family members are used as independent variables. A successor’s willingness to succeed is used as a dependent variable. Before analyzing the main research model, we conducted the first analysis to find the influence on the successor’s willingness to succeed, and the relationship of trust had the greatest effect among the independent variables. As a result of the main research model, it was found that the successor's conversational ability and home environment affected the relationship of trust, but the involvement of family members was not. Besides, the relationship of trust was found to have a fully mediating effect between a successor's conversational ability, home environment, and a successor’s willingness to succeed. This study can be said to be meaningful in that it discovered a variable called home environment that was not mainly dealt with in the business research field and reaffirmed the importance of the relationship of trust between them.


Keywords: Family Business, Succession, Trust, Successor, Mediation Effect

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∙ The author Namjae Cho is a professor of MIS at the School of Business of Hanyang University, Seoul, Korea. He received his doctoral degree in MIS from Boston University, U.S.A. He has published research papers in journals including Industrial Management and Data Systems, Computers and Industry, International Journal of Information Systems and Supply Chain, Journal of Data and Knowledge Engineering. He also published several books including “Supply Network Coordination in the Dynamic and Intelligent Environment (IGI Global)” and “Innovations in Organizational Coordination Using Smart Mobile Technology (2013, Springer)”. He consulted government organizations and several multinational companies. His research interest includes technology planning and innovation, analysis of IT impacts, strategic alignment and IT governance, knowledge management and industrial ICT policy, design thinking, and the management of family business.

∙ The author Giseob Yu is received a Bachelor’s degree from Kangwon National University and graduated from the Y.E.S. MBA and Ph.D in MIS at Hanyang University. He is CEO of TRUST Lab and an adjunct professor at Hanyang University. Interesting research fields are Family Business, Succession, Entrepreneurship, and Digital Governance in Family Business.