Succession dynamics in family businesses: Analyzing the interplay of preparedness, generational influence, and governance on firm performance in Metro Manila

Date of Publication

2026

Document Type

Dissertation

Degree Name

Doctor of Philosophy in Business

Subject Categories

Business

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation Dept

Thesis Advisor

Dr. Emilina R. Sarreal

Defense Panel Chair

Dr. Manuel R. Tanpoco

Defense Panel Member

Dr. Dinah Pura T. Depositario
Dr. Louie A. Divinagracia
Dr. Harvey Ong
Dr. Rayan Dui

Abstract (English)

Family businesses play a critical role in economic continuity, employment generation, and intergenerational wealth creation, yet many remain vulnerable to succession-related challenges due to informal governance structures, limited successor preparation, and uneven institutionalization of family business practices. This study examined succession dynamics in family businesses by analyzing the interplay of Family Business Succession Mechanisms (FBSM), Extensiveness of Family Business Succession Preparedness (EFBSP), generational influence, and Family Firm Performance (FPP) among family firms in Metro Manila.

Using a convergent parallel mixed-method research design, the study integrated quantitative and qualitative data to provide both statistical and contextual understanding of family business succession. The quantitative phase involved 180 valid survey responses from family business leaders and top management members belonging to second-generation and later-generation firms. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4 was employed to test the measurement and structural models, including mediation, moderation, predictive relevance, and multigroup analysis. The qualitative phase involved semi-structured interviews with selected family business leaders, analyzed through thematic analysis following Braun and Clarke’s six-phase approach.

Findings revealed that the Family Business Succession Model significantly predicts succession preparedness, and succession preparedness significantly predicts family firm performance. Mediation results further showed that EFBSP serves as a central mechanism through which succession-related elements influence firm performance. However, generational moderation was not supported, and multigroup analysis showed no significant structural differences between second-generation and third-generation-and-above firms. Qualitative findings explained this stability by showing strong cross-generational similarities in values-based leadership, mentoring, informal succession practices, family-centered governance, financial prudence, adaptability, and continuity orientation. While later-generation firms showed greater emphasis on modernization and professionalization, both groups shared similar succession foundations.

The study concludes that family firm performance is enhanced not merely by generational stage, but by the extent to which succession mechanisms are translated into preparedness. The findings contribute to family business succession literature by demonstrating that succession preparedness functions as a strategic organizational capability that supports continuity and performance across generations.

Abstract Format

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Abstract (Filipino)

Ang mga negosyong pampamilya ay may mahalagang papel sa pagpapatuloy ng ekonomiya, paglikha ng trabaho, at pagpapasa ng yaman sa susunod na henerasyon. Gayunpaman, marami sa mga ito ang nananatiling mahina sa mga hamon ng pagsasalin ng pamumuno dahil sa impormal na pamamahala, limitadong paghahanda ng mga tagapagmana, at hindi pantay na pagsasabuhay ng mga sistema sa loob ng negosyo. Sinuri ng pag-aaral na ito ang dinamika ng pagsasalin ng pamumuno sa mga negosyong pampamilya sa pamamagitan ng pagsusuri sa ugnayan ng Family Business Succession Mechanisms (FBSM), Extensiveness of Family Business Succession Preparedness (EFBSP), impluwensiya ng henerasyon, at Family Firm Performance (FPP) sa mga negosyong pampamilya sa Metro Manila.

Gamit ang convergent parallel mixed-method research design, pinagsama ng pag-aaral ang kwantitatibo at kwalitatibong datos upang makapagbigay ng estadistikal at kontekstuwal na pag-unawa sa pagsasalin ng pamumuno sa negosyong pampamilya. Sa kwantitatibong bahagi, ginamit ang 180 balidong tugon mula sa mga lider at kasapi ng top management ng mga negosyong pampamilyang kabilang sa ikalawang henerasyon at mga sumunod pang henerasyon. Ginamit ang Partial Least Squares Structural Equation Modeling (PLS-SEM) sa SmartPLS 4 upang masuri ang measurement at structural models, kabilang ang mediation, moderation, predictive relevance, at multigroup analysis. Sa kwalitatibong bahagi, isinagawa ang semi-structured interviews sa piling lider ng negosyong pampamilya at sinuri ang mga datos gamit ang thematic analysis ayon sa anim na yugto nina Braun at Clarke.

Ipinakita ng mga resulta na ang Family Business Succession Model ay makabuluhang nakaaapekto sa succession preparedness, at ang succession preparedness naman ay makabuluhang nakaaapekto sa family firm performance. Ipinakita rin ng mediation results na ang EFBSP ay nagsisilbing pangunahing mekanismo kung paano naaapektuhan ng mga elemento ng succession ang performance ng negosyo. Gayunpaman, hindi sinuportahan ng resulta ang moderating effect ng henerasyon, at ipinakita ng multigroup analysis na walang makabuluhang pagkakaiba sa structural relationships sa pagitan ng ikalawang henerasyon at ikatlong henerasyon pataas. Ipinaliwanag ng kwalitatibong resulta ang katatagang ito sa pamamagitan ng mga pagkakatulad sa iba’t ibang henerasyon, tulad ng values-based leadership, mentoring, impormal na succession practices, family-centered governance, financial prudence, adaptability, at continuity orientation. Bagama’t mas malinaw ang pagbibigay-diin ng mga later-generation firms sa modernization at professionalization, parehong grupo ang nagpapakita ng magkatulad na pundasyon sa succession.

Ipinapakita ng pag-aaral na ang family firm performance ay napapahusay hindi lamang dahil sa antas ng henerasyon, kundi dahil sa lawak ng pagsasalin ng succession mechanisms tungo sa aktuwal na preparedness. Nag-aambag ang pag-aaral na ito sa literatura ng family business succession sa pamamagitan ng pagpapakita na ang succession preparedness ay nagsisilbing strategic organizational capability na sumusuporta sa pagpapatuloy at performance ng negosyo sa iba’t ibang henerasyon.

Abstract Format

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Format

Electronic

Keywords

Family-owned business enterprises

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Embargo Period

2029

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