Succession planning across generations in Malaysian family businesses.

Abstract

The COVID-19 pandemic has posed significant challenges for family businesses around the world, forcing them to adapt to the "new normal." In family businesses, succession planning is critical for ensuring continuity and growth. The objective of this study is to look into how company leaders in Malaysia have implemented succession planning in previous research. It examines the context of Malaysian family businesses, focusing on the critical elements of succession planning and the challenges that business leaders face. A semantic approach was used in this study to focus on surface-level themes based on participants' explicit statements. The study's findings reveal that, although formal succession planning is recommended, informal practices are prevalent in Malaysian family businesses, impeding effective generational transfer. Limited scholarly research in Malaysia underscores the necessity for more structured and well-documented succession planning strategies. The study emphasises the value of formalisation, urging family businesses to consider succession planning as a strategic investment. Cooperation between incumbents and successors is critical for fostering innovation and competitiveness, both of which are required for adapting to changing market dynamics. This article concludes by emphasising the importance of structured succession planning approaches for Malaysian family businesses. By addressing these issues and embracing formal strategies, family businesses can secure their legacy, ensuring their continued success and contribution to the economy.