THE SUCCESSION TRANSITION OF SECOND-GENERATION FAMILY BUSINESS IN SINGAPORE: CHALLENGES AND IMPLICATIONS OF HIGHER EDUCATION LEADERSHIP TRAINING
Keywords:
MBAAbstract
ABSTRACT
ABSTRACT
Research is conducted to explore the leadership traits required from the leadership of second-generation entrepreneurs in a family business and whether advanced degrees and courses will help in their journey to continue the legacy and develop the business. A qualitative study was conducted with five second-generation entrepreneurs in Singapore to delve in-depth into their situation, challenges, motivations, and question if further education affects the success of family business into the second-generation. Literature on existing studies is referenced, with many studies focusing on succession planning and developing the next generation. This research will focus on the unique situation in
Southeast Asia, on the significant factors surrounding leadership and higher education, which will enhance and smoothen the transition process from the first-generation to the second-generation.
In the study, several problems that family businesses in Singapore face will be highlighted, specifically to the transition to the next successor. Singapore was a fishing port in the 1930s (Shimizu, 1997) and saw the country become an independent republic in 1959 (Wikipedia Contributors, 2019). In the 1970s, it became one of the Four Asian Tigers along with Hong Kong, South Korea, and Taiwan to experience a surge in manufacturing and exports (Bloomenthal, 2019). During this following decade, many of the first-generation businesses started. In the 2000s, many of these second-generation entrepreneurs graduated with degrees and started to work in their family business. In the 2020s, it was the ripe time for a successor, when the founder was approaching retirement. The participants of this study consider several factors to be key to the transition stage give confidence to all stakeholder as the business approach the next development phase.
These are leadership qualities, entrepreneurial qualities, investing in advanced education and courses in leadership, and emotional intelligence. While the findings generally agree with existing literature reviews regarding leadership and management applied to the second-generation, there will be a greater focus on details of the unique business culture and the struggles of the transition process.
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