David Emmanuel P.

Poticano
MAREACM Journal Critique
December 10, 2021

Career Choice Intentions of Adolescents With a Family Business Background

Elke Schröder, Eva Schmitt-Rodermund and Nicolas Arnaud

Abstract

This scientific paper focused on analyzing the factors or determinants of

adolescents with a family business background in terms of their career choice intention.
This was observed from both adolescents’ and parents’ perspectives. Through
differentiating three particular groups of adolescents: (1) to continue the family business
(intentional successors); (2) to start their own business (intentional founders); (3) to
work for other companies outside the family business (intentional employees). Based on
the multinomial regression analyses of the respondents compiling of 106 German family
firms, the paper found specific factors that notably alter adolescents’ career choice
intentions. These factors include the adolescent's personality characteristics, gender,
identification with the family business, perception of father’s job rewards, and parental
succession preference and preparation. The paper's findings add value to prior family
business succession and entrepreneurial research. This is through practically
exemplifying the various effects on descendants as early as adolescence in terms of
their career choice intentions which could be by-means-of individual and social
interaction impacts.

Contents
Abstract 1
Statement of the Paper’s Research Problem 2
Goals, Purpose, and Significance of the Paper 2
Framework Used in the Paper 2
Data Collection Methods and Analysis Used in the Paper 5
Summary of the Results 7
Three (3) Major Points of Agreement 11
Three (3) Major Points of Disagreement 12
Source(s) of Information Used in Analyzing the Scientific Paper 13

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 Statement of the Paper’s Research Problem

From an adolescents’ and parents’ view, what are the career choice intention
determinants of adolescents with a family business background?

Goals, Purpose, and Significance of the Paper

The paper aimed to research the antecedents of an adolescent’s career choice

intention who has a family business background. Precisely, the scientific paper focused
on examining the determinants of three various groups of adolescent’s career choice
intentions namely: (1) to continue the family business (successors), (2) to start their own
business (founders), and (3) to work for other companies outside the family business
(employees). The purpose of the paper is to add new insights on career choice
intentions of adolescents with family business backgrounds due to this topic having only
a few studies tackling it. Now, the significance of this paper is that it helps determine
critical inferences for family business owners along with providing new information for
research on entrepreneurship and family business. This is through determining the
differences between intentional successors from intentional founders and intentional
employees in regards to various conditions.

Framework Used in the Paper

As this paper revolves around family business succession and entrepreneurial

research, a substantial amount of literature draws its theoretical framework from Ajzen’s
(1991) theory of planned behavior (TPB). Now, as this paper largely focuses on the
career intentions of adolescents with a family business background, the TPB is
integrated within their theoretical foundations. This is since the TPB concerns itself with
one’s attitude, subjective norms, perceived behavior control, intentions, and behavior.
The TPB assumes that an individual’s intention will reach its heights as long as the
individual sustains a preferable attitude towards the behavioral intention, encounters
hefty subjective norms concerning that behavior, and perceives to execute the behavior
correctly and controllably. This is why this theoretical framework applies to the topic of
the paper to understand the determinants of the career intentions of adolescents with a
family business background. In addition to this, empirical research regarding the TPB
shows that the variable of intentions is the solitary foremost predictor of any particular
behavior, which includes entrepreneurship and family business succession.

This framework is applicable since it would analyze the aspects of the intentions
of the respondent, which is similar to the paper our group is constructing for
MAREACM. Furthermore, the researchers assumed that a significant influence on
succession planning and continual survival of a family business would be the

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succession implication of an individual as early as adolescence that is associated with
being self-employed in adulthood. This assumption was made through empirical
foundations for the prognostic value of career intentions in regards to the behaviors and
desires of adolescence. The paper then included findings on the individual resources
and contextual factors that determine the career choice of adolescents. These
determinants include the adolescent's personality characteristics, gender, identification
with the family business, perception of father’s job rewards, and parental succession
preference and preparation.

Personality. The first determinant evaluates the individual by measuring their Big
Five Traits. Based on meta-analytic findings, these five traits indicate the model of
personality which includes conscientiousness, extraversion, agreeableness, openness
to experience, and neuroticism. These indications are vital for entrepreneurial research
since it helps determine an individual’s personality. Based on research, entrepreneurs
got higher scores for conscientiousness and openness to experience and got lower
scores for agreeableness and neuroticism compared to business managers. Moreover,
owners who started to build up their own businesses (founders) were more likely to be
steady and self-sufficient as compared to owners who succeeded in their family
business. The paper speculates that potential founders are classified with a high level of
entrepreneurial personality traits, potential entrepreneurs are classified with a medium
level, and potential employees are classified with a low level. Openness,
conscientiousness, and extraversion are hypothesized to be positively related to
choosing to create a new business. While agreeableness and neuroticism are
hypothesized to be positively related to choosing employment outside the family firm.
Gender. Females and males differ in terms of family business succession. It is
quite evident from previous studies regarding the career choice intention of males and
females. Wherein females are at a disadvantage when it comes to being chosen as the
business successor. They would only be appointed as a successor if it were necessary.
So, when it comes to the career intention of females, they would differ otherwise. They
are more likely to choose employment instead of taking over the family business.
Through this analysis, gender could relate to career choice intentions. Wherein women
are more likely to choose employment instead of taking over the business. And they are
also more likely to choose to take over the business instead of starting their own.
Gender is hypothesized to be related to career choice intentions such that women will
be more likely to choose to work outside the family firm.
Identification with the family business. Individuals in the world have their own
attributes, along with their own identification. However, there are certain perspectives
wherein individuals view their selves through particular social roles in life. This is where
individuals view themselves as part of certain groups or organizations. This is why
particular people identify themselves with an organization that discerns a sense of
belongingness with that organization. These individuals trust in the organization’s

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desires and objectives and operate in a way that tries to accomplish their goals. In
which, descendants view themselves as a vital part of their family business tend to
contain that hefty aspiration to help accomplish the business’s goals. The assumption is
that identification with the family business as affective commitment antecedent foretells
adolescents’ succession intentions. This is a crucial antecedent due to it being a vital
additional factor in TPB. Through understanding the extended TPB and an
organization’s identification, then the assumption is that identification with the family
business could predict an adolescent’s career intentions. Adolescents who show high
levels of identification with the family business are hypothesized to be more likely to
want to work for the family business instead of deciding to produce their own business
or work outside the business.
Perception of fathers’ work conditions. As offsprings of family businesses
grow old and turn into adolescents. Their life within those years was shaped by the
perception of their father’s occupation (not mothers). They are also influenced by the
feelings and encounters of their family members at work. These adolescents view their
father’s occupational features which link their preference to work the same job their
fathers do. This is through their respect for the occupation their parents do. The purpose
of the study is to include scientific evidence for role modeling of parents and through
observing the effects of perceived parental job rewards on an adolescent’s career
choice intention. Furthermore, it intends to shed light on the particular differences in
adolescents’ intentions to start their own business and to continue their family business.
Adolescents who perceive their father’s work in the family business as positive and
rewarding are hypothesized to be more likely to plan to work in the family business
instead of deciding to produce their own business or work outside the family firm.
Parental succession preference and preparation. As children grow into
becoming adolescents their goals tend to change. They change throughout their lives
and specific factors cause those changes. Now, parents are one factor that could impact
the adolescent’s career planning. Based on the paper, mothers were found to be crucial
counselors or guidance for their adolescent’s career development plans. Studies show
that parents are in a problematic circumstance since they want their children to continue
their life work on one side and at the same time don’t want to control their children’s
career and life plans. Another purpose of this paper is to determine regardless if
parents’ perceptions and characteristics about business succession convey to
adolescents’ career intentions. Furthermore, the preparation for business succession
could also be a crucial role in career intentions Wherein parents who are more likely to
prepare their children for business succession are presumably possible to add to their
offspring’s career intentions. Parents’ preference and preparation about succession is
hypothesized to increase the possibility that an adolescent will convey intentions to work
in the family business rather than deciding to produce an own business or work outside
the family firm.

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 Figure 1. Personally made Conceptual Model of the paper
(The actual paper by Schröder et al. (2011) did not have any conceptual model
framework in the document)

Data Collection Methods and Analysis Used in the Paper

Participants
As this paper observes adolescents, there were only small amounts of
respondents due to there being no available lists of children owner-managers. This is
why the paper contained a humble amount of samples of 106 families contacted from
Germany. Through utilizing mixed methods of standardized questionnaires and
open-ended questions, the researchers interviewed adolescents and parents
individually at their houses.

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 Parents have interviewed who currently owners and leaders of the firm had an
average age of 46.69 years old. Entirely, about 94% of the parents were married and
had an average of 2.3 children. 73% of the parents would expect a decision in regards
to the succession of the family business expected it to arrive in 10 to 15 years. Now, the
average age of adolescents is 16.87 years old with a minimum of 13 and a maximum of
22 years old. The majority of the respondents were firstborn (71%), with fewer girls
(31%) and more boys (69%). About 52% of the family businesses were possessed and
employed within the second generation or older, which means that half of the parents
experienced a succession themselves.

Measures
Dependent Variables. Adolescents were given four options to choose from: (a)
working with other companies, (b) starting their own business, (c) continuing the family
business, and (d) being not in any form of employment. Wherein the paper compiled the
data into three groups representing their career choice intentions: “employment” n = 35,
“founding” n = 17, and “succession” n = 54 (as seen in Table 1). The paper also found
that no one decided to pick “no employment”.
Independent Variables. This contained the mean and standard deviations of each
corresponding variable such as demographics and personality (as seen in Table 1).
Each group of adolescents’ career choice intentions was measured with the
corresponding variables to result in the mean and standard deviation of each group
(“employment”, “founding”, and “succession”).
Personality. This was measured by the use of the five-factor model of personality
while utilizing a validated German 45-item questionnaire. These respondents rated nine
bipolar items for each particular personality characteristic with responses ranging from 0
to 5. These are seen through various α that corresponds to conscientiousness,
extraversion, agreeableness, openness, neuroticism.
Adolescent’s gender. This variable was included as an independent variable,
coding with boys = 0, girls = 1.
Identification with the family business. This was assessed through the use of the
Organizational Identification Scale from Mael and Ashforth (1992) dedicated to the
family business context. There were only six items to apprehend adolescents with a
family business, with probable answers ranging from 1 (not at all true) to 5 (very true); α
= .70.
Adolescents’ perception of father’s “job rewards”. This variable was measured
through the use of measurements from Neblett and Cortina (2006), which includes
intrinsic and extrinsic rewards containing six items, α = .74, based upon a range from 1
(not at all true) and 5 (very true).
Parental succession preference and preparation. This variable was assessed
with the use of two items only. The first item is to assess the preference of parents with
the use of one question, “How much would you like your son/daughter to succeed you in

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the family business?” through utilizing the same 5-point scale. The second item is to
assess the preparation of the parents with the succession through the use of another
question “Do you prepare your child to succeed you in the family business?” with two
simple choices only, yes (1) and no (0). Those parents who responded yes were asked
how they prepared their children for the family business succession. Somansered
through part-time jobs and taking them to suppliers and customers.
Control Variable. The control variables for this study were adolescents’ birth
order position (first-born vs other) and age. Furthermore, the researchers utilized
business variables, particularly generation of the family business, the particular number
of employees, and turnover in the year 2007, which were also used as control variables.
These variables have displayed a correlation between business variables and the
preparedness to flourish in parent’s family business.

Table 1
Means, Standard Deviations, and Proportions of the Independent Variables for the
Three Groups of Career Choice Intention

Summary of the Results

The results show particular circumstances, as seen in Table 2. Which shows the
Pearson Correlations of each corresponding variable examined, as seen below. The
study found that there was a maximum correlation of 0.41. which therefore stipulates
that there is only an adequate shared variance between each variable. They utilized the
stepwise multinomial logistics regression model to test their mentioned hypotheses.
These models operate like plain logistic regression other than that they speculate

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membership of multiple classifications comparable to an established category rather
than one that of dichotomous classifications. The researchers tested their hypotheses
by computing the possibility of being positioned in the group of employees differentiated
from the group of successors along with the possibility of being positioned in the group
of founders differentiated from the group of successors. The findings from the
multinomial logistics regression model are seen in Table 3. Through that table, it shows
the various characteristics to measure each model. The variables of the framework are
measured through this analysis for each model. Wherein located in the top area of Table
3, these coefficients could be clarified as the scope to which expands in the
independent variable are related with increases in the possibility of being positioned in
the particular classification “employment intention” contrasted with the base
classification “succession intention”. Now, located at the bottom area of Table 3 shows
the possibility of being positioned in the classification “founding intention” contrasted
with the base classification “succession intention” is described.

Table 2
Pearson Correlations of the Variables Examined

Who Intends to Become an Employee Outside the Family Firm Instead of

Succeeding in the Family Business?. Based from Table 3 corresponding to Model 1
shows that for each one-unit rise in Agreeableness, the respondents were 3.28 times
more presumably to favor employment outside the family business rather than
succeeding in the family business. However, the further adolescents identify with the
family, the more likely they will choose the family business succession rather than
employment. This goes hand in hand with the way adolescents perceived their father’s
self-employment as remarkably rewarding, then the more likely they will choose the
family business succession rather than employment, Exp(Β) = 0.21, p < .01. Although,
interestingly enough the more parents wanted their offspring to succeed in the family

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business, the less likely they are to choose to succeed in the family business compared
to employment, Exp(Β) = 0.49, p = .02. Parents who prepare their children to succeed in
the business were correlated with a 233% growth of the odds of deciding to succeed in
the family business. Now, in regards to gender as an influential factor, the study finds
that girls are 4.15 times likely to become an employee rather than succeed in the family
business. Generally, high Agreeableness, few perceived job rewards, low identification
with the business and parental succession preference and preparation, and female
gender were correlated with the career choice intention to choose employment more
than succeed their parents in the family business.

Who Intends to Found a New Firm Instead of Succeeding in the Family

Business?. Now we have the bottom area of Table 3 which is the probability of choosing
to start a new business rather than continue the family business. Wherein the paper
found that the significant factors that related to the adolescents’ preference to start their
own business rather than succeeding in the families were the female gender and
personality of openness to new experiences. These two factors remained vital even
after adding the independent variables in Model 2 and 3. Now, there were also no
significant differences between an intentional founder and intentional successor in
regards to an adolescent’s identification in the business and perceived parental support.
Furthermore, parents who preferred their offspring to continue the family business was
more likely to influence them not to start their own business, Exp(Β) = 0.27, p < .01.
Comparably, the parent’s preparation for business succession also lessens the
preference of an adolescent to start their own business, Exp(Β) = 0.07, p = .02.
Basically, a female gender adolescent who has a high openness for new experiences,
low parental preferences, and preparation substantially increased the founder intention
of an adolescent rather than their succession intention.

Based on the model fit statistics in Table 3, the suitability of all models was
substantial, and the overall amount of variance measured for by all determinants
observed was 59% (Nagelkerke pseudo-R2 = .59). In terms of the personality
characteristics of the Big Five traits, it was openness and agreeableness that
substantially contrasted the between each career choice intention group. Gender also
turned out to be a vital determinant of the intention of an adolescent, wherein girls are
more likely to start their own business instead of succeeding in their family business.
While the presumption of identification with the family business and perceived parental
rewards were affirmed for chosen successors and employees (successors >
employees) but not for founders and successors (successors = founders). Lastly, the
paper’s hypothesis of intentional successors being more preferred and prepared in
continuing the family business instead of intentional founders and employees due to
parental behaviors were supported through the findings stated.

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Table 3
Results of Multinomial Logistic Regression Analyses

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 Three (3) Major Points of Agreement

1. Research showed that gender has a significant effect on their control model.
Particularly wherein women display a higher likelihood to choose for employment and a
lower inclination to be intentional founders (Zellweger et al., 2011).

Zellweger et al. (2011) explicitly compared intentional founders, successors, and

employees regarding their underlying motives and behavioral control perceptions, their
study makes several important contributions. Wherein particular contributions aligned to
the findings of this paper. In which one particular finding is how gender plays a role in an
adolescent’s career choice intention. Similar to this paper, Zellweger et al. found that
women also prefer to take up employment rather than start up their own company. This
supports the findings that Schröder et al. (2011) attained wherein girls prefer to be
intentional employers instead of being intentional founders.

2. Daughters would implement important changes in the business structure to produce

their own business to their liking (Vera & Dean, 2005).

Vera and Dean (2005) stated that the operational structure of daughters was
usually compared to the way their mothers operated their business. So, in order to avoid
such comparison from non-family members, daughters would tend to produce their own
business by creating crucial developments within the organizational structure of the
family business. This would usually occur from a mother’s succession which is why they
call the occurrence “mother’s shadow conflict”. Now, the study shows that daughter
would preferably start their own business rather than continue the family business to
avoid comparison of operational structures. Daughters would be more likely to start their
own business than choose to succeed in the current family business, which in this case
aligns with the findings of Schröder et al.

3. Taking into account that incumbents may or may not be ready for family business
succession is vital to comprehending the congruence effects of incumbent and
successor personality traits as they relate to the effectiveness of succession-related
career choice transitions (Marler et al., 2017).

The findings of Marler et al. (2017) show that determining the congruence effects
of successor personality traits shows that these traits relate to the effectiveness of
career choice intentions. Basically, analyzing their personality traits, which supposedly
should be proactive personality traits, goes to show how these would relate to the
successful transition of the individual. Wherein they would either decide to transition into
the business or not. However, the crucial part of the findings was how proactive

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personality traits come into play when it comes to that decision. This shows the
relationship between these findings and the results of Schröder et al. that measures the
Big Five personality traits wherein some fall into the category of being a proactive trait.
For example, being open to new experiences and conscientiousness would affect their
intention to start a new business, continue the family business, or work for another
business.
Three (3) Major Points of Disagreement

1. A key message was that distinct aspects of eudaimonic well-being may be valuable
for understanding how the entrepreneurial journey plays out over time. Those with
already higher levels of these aspects of well-being may be more likely to embark on
new self-initiated business pursuits (Ryff, 2019).

Ryff (2019) mentions that the crucial message would be determining the
distinctive aspects eudaimonic well-being has on comprehending the entrepreneurial
journey of an individual. Wherein in contrast to the paper of Schröder et al. wherein
instead of measuring the eudaimonic well-being of the person they instead measured
the personality traits of each adolescent. Ryff mentioned that the eudaimonic well-being
of a person may be a predictor of the career intentions of an individual over time. In
which the results of the paper showed that individuals with an overall high level of
well-being would be more likely to journey in new and unprecedented business
ventures. So, instead of measuring one’s personality traits, it could be assumed that
measuring one’s eudaimonic well-being could also be of use in determining an
adolescent’s career intention.

2. However, the preferred career choice is the employee option, which was contrary to
their expectations. The researcher expected that individuals with higher levels of the
independent variables in the study would not want to be employees (Vieira, 2018).

Vieira (2018) found that the preferable option of individuals would be to opt for
being an employee. Wherein individuals measured with a high level of locus of control
self-efficacy, independence motive, and innovation motive preferred to be employees
rather than continue the family business. Which in this case, was not in accordance with
the expectation of the researcher. This is because the majority of the individuals were
more likely to choose employment instead. As compared to the study by Schröder et al.,
which shows that most adolescents with high levels of independent variables preferred
to continue the family business instead of opting for employment.

3. One study provides partial evidence that even in countries with a strong male
primogeniture tradition such as China, daughters can be selected as successors at an
early age (Deng, 2015).

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 As Schröder et al. explain that there is a gender stereotype when it comes to
family business succession. Wherein parents would prefer their male sons to take over
the business as compared to opting for their daughters. However, based on partial
evidence of the study by Deng (2015) it shows even if there was a preference for strong
male tradition in regards to the family business, there are instances where daughters
would be more likely to be picked to succeed in the family business at an early age.
Wherein, in this case, parents even with the strong male culture would still possibly opt
to want the daughters to succeed in the business instead of their sons.

Source(s) of Information Used in Analyzing the Scientific Paper

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human
Decision Processes, 50(2), 179–211.
https://doi.org/10.1016/0749-5978(91)90020-t

Deng, X. (2015). Father-daughter succession in China: Facilitators and challenges.

Journal of Family Business Management, 5(1), 38–54.
https://doi.org/10.1108/jfbm-05-2014-0011

Gardner Neblett, N., Schnabel Cortina, K. (2006). Adolescents’ thoughts about parents’
jobs and their importance for adolescents’ future orientation. Journal of
Adolescence, 29(5), 795–811. https://doi.org/10.1016/j.adolescence.2005.11.006

Mael, F., &amp; Ashforth, B. E. (1992). Alumni and their alma mater: A partial test of the
reformulated model of organizational identification. Journal of Organizational
Behavior, 13(2), 103–123. https://doi.org/10.1002/job.4030130202

Marler, L. E., Botero, I. C., & De Massis, A. (2017). Succession-related role transitions
in family firms: The impact of proactive personality. Journal of Managerial Issues,
57-81.

Ryff, C. D. (2019). Entrepreneurship and eudaimonic well-being: Five venues for new
science. Journal of Business Venturing, 34(4), 646–663.
https://doi.org/10.1016/j.jbusvent.2018.09.003

Vera, C. F., &amp; Dean, M. A. (2005). An examination of the challenges daughters

faces in family business succession. Family Business Review, 18(4), 321–345.
https://doi.org/10.1111/j.1741-6248.2005.00051.x

Vieira, L. I. C. (2018). Investigating the career choice intentions of students with family
business backgrounds: the portuguese case (Doctoral dissertation).

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Zellweger, T., Sieger, P., & Halter, F. (2011). Should I stay or should I go? Career choice
intentions of students with a family business background. Journal of business
venturing, 26(5), 521-536.

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