Family firms represent relatively stable systems so long as the founding entrepreneur is in place.
They subsequently become destabilized as a function of such “triggering events” as the decision to bring a family member into a senior position, the founder’s decision to disengage or decision about firms’ selling (Morris, Williams, Nel, 1996). Successful adaptation to the new situation is influenced by the conditions within the firm (e.g. state of maturity, economic health) and family dynamics (e.g. closeness of family, interdependencies among family members, sibling rivalries, financial condition of family members) (Beckhard, Dyer 1983), as well as the situation in the firm’s environment.
Such critical changes in the firm, eventually leading to the ownership and authority transfer, need to be overthought and planned in details (Family Business Survey, 2016).