Development of successors' entrepreneurial competencies in family businesses: evidence from Lebanon

Abstract

Family businesses are vital for the development and growth of economies across the Middle East. They represent the predominant organizational form in the Lebanese economy. Notwithstanding, little attention is paid to the managerial procedures and practices in the family business field of study. A key concern in family businesses is succession and development of entrepreneurial competencies. In light of the above, this study seeks to find out the critical characteristics that are judged essential for successful family businesses successors, identify the predecessors competencies crucial to prepare successors and examine the vital importance of the development of successors entrepreneurial skills in enhancing the performance of the business. The research applies a qualitative research methodology with a case study approach, where four successful Lebanese family businesses known for their effective performance from one generation to another were studied. Results indicate that various characteristics are essential for successful family businesses successors. These are the successors ability and willingness to be leaders, their entrepreneurial skills and competencies, as well as their self-confidence and acquired knowledge through their investment in trainings. Further, many required predecessors competencies are crucial for preparing successors. These are tolerance, serenity, enthusiasm, honesty, effective communication skills, and smart risk-taking behavior. The study concludes with implications of the findings and guidelines for futureresearch.