Professional Documents
Culture Documents
assistance with succession planning and intergenerational issues; thus, shifting their leadership
from generation to generation can be fraught with tension and animosity since family members
may have opposing views on the company's future. Conversely, non-governmental organizations
(NGOs) require assistance managing various worldwide activities, tackling social challenges,
and navigating relationships. Operating in numerous countries with different cultural norms and
regulations might make it difficult for non-governmental organizations to carry out their tasks
successfully.
governmental organizations (NGOs) can be difficult and need careful negotiation. Therefore, this
essay will delve into the intricacies of the complex processes of succession in family-owned
businesses and non-governmental organizations (NGOs) and the challenges inherent in family-
examining the hurdles NGOs encounter in managing diverse international operations, addressing
Family businesses are an essential part of the global economy, employing a large
proportion of the worldwide workforce and contributing significantly to many countries' GDP
(Lennmalm, 2017; Zochodne, 2019; Cisneros et al., 2020; S Beaucage & Paré Julien, 2021;
Veilleux et al., 2021). Contrary to their economic importance, family firms have various unique
businesses, such transitions are hampered by personal ties, emotions, and family dynamics,
which frequently impede the process. Indeed, generational shifts can lead to conflicts and
disagreements, as different generations often hold opposing perspectives on the company's future
path (S Beaucage & Paré Julien, 2021). According to Hofmann, E. & Sole, J. (2020), family-
owned firms must also cope with intergenerational dynamics, which might vary in attitudes,
values, and work methods. It can be that younger family members may be more tech-savvy and
receptive to new ideas, while older generations may be more conventional and reluctant to
change. Striking a balance between honoring the past's heritage and seizing future chances can
take time, as disagreements may arise about how the company should evolve and adapt to
changing market conditions. According to research, around 70% of family firms do not
effectively transition to the second generation, and just 12% reach the third generation
The confluence between family and corporate systems can present both opportunities and
obstacles. While it can promote shared values, identity, and ease of decision-making, it can also
lead to conflicts of interest and difficulty in resolving family disagreements (Beaucage & Paré
Julien, 2021; Hall, 2018; Barros-Contreras et al., 2019; Tagiuri & Davis, 1978). Family
businesses frequently focus on long-term stability and growth to carry on the family legacy.
Calabrò et al. (2021) and Tagiuri & Davis (1978) highlight their attention to longevity as a
authority and property from one generation to the next to maintain the family's legacy, customs,
and beliefs.
The deep interpersonal dynamics and social structures present in family enterprises
contribute to the complexity of this process (Lansberg, 1999; Chua et al., 2003; Cisneros et al.,
2020; S Beaucage & Paré Julien, 2021). Although there are many different succession planning
techniques, their successful execution and promotion of the business's continuity necessitate a
thorough comprehension of the circumstances of the family business (Lansberg, 1999; Gersick et
al., 1997; Veilleux et al., 2021). The longevity of family enterprises is threatened by the intricate
1997; Barnes & Carlock, 2013; Veilleux et al., 2021). This dilemma, which encompasses
generational shifts and succession planning, is the central issue of this study.